Pfizer (PFE) Narrows Full-Year Revenue Guidance After 3rd-Quarter Results Beat Views

Press Release

Pfizer (PFE) on Tuesday narrowed its full-year revenue guidance after the pharmaceutical giant posted third-quarter results that beat expectations.

The New York-based company said for the full year it expects revenue between $51.2 billion to $52.2 billion, up from its previous guidance for $50.5 billion to $52.5 billion. The consensus compiled by Capital IQ is for $51.44 billion. Adjusted per-share earnings on a diluted basis are seen between $2.94 to $3, higher than Pfizer’s previous forecast of $2.76 to $2.86 and above the Street’s view for $2.82.

For the quarter ended Sept. 29, revenue was $12.68 billion, down from $13.3 billion in the prior-year quarter but above the consensus for $12.37 billion. Adjusted diluted EPS slipped to $0.75 from $0.77 last year, higher than the Street’s expectation for $0.62.

Pfizer’s shares were more than 3% higher in morning trading.

“We reported strong-third quarter 2019 financial results, driven by 9% volume-driven operational revenue growth in our biopharma business, including growth from key brands such as Ibrance, Xeljanz, Eliquis, Vyndaqel and Inlyta as well as in emerging markets,” Chief Executive Albert Bourla said. “Upjohn revenues were negatively impacted primarily by the July 2019 loss of exclusivity of Lyrica in the US, while consumer healthcare revenues declined as a result of the completion of the (joint venture) with (GlaxoSmithKline) during the quarter.”

Revenue at Pfizer’s biopharmaceuticals business rose 9% operationally to $10.11 billion.

Upjohn revenue dropped 26% to $2.2 billion. Pfizer said excluding the impact of Lyrica in the US, revenue for the unit fell 6% operationally.

Consumer healthcare revenue sank 54% operationally to $377 million. Pfizer and GlaxoSmithKline on Aug. 1 closed a deal to combine their consumer healthcare businesses. Pfizer owns 32% of the joint venture while GlaxoSmithKline owns the remaining 68%.

Pfizer said GlaxoSmithKline plans to spin off the joint venture through a demerger of its stake to its shareholders and a listing of the entity on the UK equity market. Pfizer said GlaxoSmithKline has five years after the deal’s closing to decide whether it will proceed with the move.

Adjusted cost of sales in the just-ended quarter to $2.46 billion from $2.67 billion, and adjusted selling, informational and administrative expenses were $3.2 billion, 7% lower operationally than the year before. Adjusted research and development expenses were 2% lower to $1.94 billion.

For the full-year, Pfizer narrowed its adjusted SI&A expenses guidance to $13.5 billion to $14 billion from $13 billion to $14 billion previously. The view for adjusted R&D expenses was also narrowed to $7.7 billion to $8.1 billion from $7.9 billion to $8.3 billion before.

This post was originally published on Health Opinion

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