Pfizer (PFE) 1Q Earnings and Revenue Beat on Cancer Drug, Vaccine Sales
Shares of Pfizer Inc. (PFE) were trading up +0.75 or +2.29 percent to $33.55 per share in Tuesday’s premarket after the company reported better than expected earnings and revenue for its fiscal first quarter earlier this morning. Pfizer stock closed at $32.90, up +0.09 or +0.28 percent in Monday’s regular trading session.
Incorporated in 1942, New York City based Pfizer Inc. is a global research based biopharmaceutical company and the largest company of its kind in the world by revenue.
For Pfizer’s first quarter, the company reported net income of $3.02 billion or $0.49 per share compared to $2.38 billion or $0.38 per share in the same period one year ago. After the exclusion of some items, Pfizer earned $0.67 per share in the quarter, while revenue came to $13.01 billion an increase of +19.7 percent over the previous year’s first quarter. The analyst consensus was for earnings of $0.55 per share on $12.0 billion in revenue.
This quarter is the first in which Pfizer includes the results of its September, 2015 acquisition of Hospira Inc. It is also the first quarter reported since the termination of the $160 billion merger agreement with Allergan Plc (AGN) as U.S. regulators cracked down on so-called “tax inversion” deals earlier this month.
Ian Read, Pfizer’s Chairman and Chief Executive Officer stated in the earnings release that, “I believe this performance results from our Company being well positioned in terms of product portfolio, organizational structure and leadership, as well as by our continued strong financial flexibility. In addition, our late stage product pipeline is increasingly ready to deliver our next set of prospective growth drivers with competitive positions in high-potential therapeutic areas where I believe Pfizer can be a leader.” Read continued saying, “In addition, we have made excellent progress integrating the legacy Hospira operations and now expect to achieve $1.0 billion of Hospira cost savings by 2018, 25% more than our initial cost savings target of $800 million.”
The company’s innovative products division reported sales of $7.03 billion in the quarter, while the established products segment reported $5.97 billion. Prevnar vaccine products sales increased to $1.51 billion, while the company’s cancer drug, Ibrance had sales of $429 million. Analysts expected sales of $1.4 billion for Prevnar and $393 million for Ibrance.
Pfizer upwardly revised its guidance for 2016’s full year. The company now expects revenue to be between $51 billion and $53 billion, up from $49 billion to $51 billion with adjusted earnings of $2.38 to $2.48 per share compared to a previous $2.20 to $2.30 per share.
Other News About PFE
Ohio Medicaid gets $25M from Pfizer drug discount settlement
State attorney general alleged the company didn’t give Medicaid the same discounts as private buyers of the heartburn drug Protonix.
Pfizer Hosts Annual Meeting of Shareholders
The company also declared a $0.30 dividend for the second quarter, its 310 consecutive quarterly dividend.
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