Pfizer Beats Expectations, but Guidance Disappoints
February 02 2016 - 8:06AM
Dow Jones News
By Chelsey Dulaney
Pfizer Inc. on Tuesday reported better-than-expected results for
its fourth quarter, but offered soft guidance for 2016.
Pfizer, which struck a $155 billion deal in November to combine
with Allergan PLC, said it expects to earn $2.20 to $2.30 a share
this year, excluding special items. Analysts polled by Thomson
Reuters had forecast $2.36 a share in earnings.
The company forecast $49 billion to $51 billion in revenue.
Analysts were expecting $52.49 billion in revenue.
The guidance excludes any impact from its inversion deal with
Allergan, which would move Pfizer's headquarters to Ireland, where
the tax rate is lower. The deal would also create the world's
biggest drugmaker by sales. The deal is expected to close in the
second half of 2016.
In the latest quarter, new drugs such as Prevnar pneumonia
vaccines, cancer drug Ibrance and blood-thinner Eliquis helped
drive a 15% increase in innovative product sales, or a 22% increase
when backing out the impact of foreign exchange rates.
In September, Pfizer bought Hospira Inc. in a $16 billion deal
that has made the company a leading player in the growing market
for lower-priced versions of costly biotech drugs. Pfizer, like
many of its peers, has faced a string of patent expirations over
recent years as well as growing generic competition for former
blockbusters like cholesterol fighter Lipitor and pain pill
Celebrex.
Sales slipped 2.2% in the established drug business, but were up
5% excluding currency impacts.
In all, Pfizer reported a profit of $613 million, or 10 cents a
share, down from $1.23 billion, or 19 cents a share a year
earlier.
The quarter included several special items, including a $878
million foreign currency loss related to Venezuela and a $491
million pension settlement charge.
Excluding those and other special items, adjusted earnings were
53 cents a share. Analysts polled by Thomson Reuters had forecast
adjusted earnings of 52 cents a share.
Revenue rose 7.1% to $14.05 billion. Analysts had forecast
$13.56 billion in revenue.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
(END) Dow Jones Newswires
February 02, 2016 07:51 ET (12:51 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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