Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Pfizer Inc, the leading US drugmaker, posted quarterly earnings today, revealing steady revenue and profit, with declining sales for major divisions and climbing R&D expenses. Full-year outlook was slightly lowered, but still relatively positive.

The New York-based companys Q2 revenue was logged at $12.773 billion, down 2% from last year. Net income dropped 77% to $2.912 billion, or $0.45 per share, as last years Q2 profit is skewed by the sale of Pfizers animal health unit for about $10 billion. Excluding the divestment, net income rose 3.57%

“I am pleased with our operating performance to date. Our recently launched products continued to gain traction during the quarter,” Ian Read, Chairman and Chief Executive Officer, stated. “I continue to see Pfizer as well positioned to effectively execute on our strategy to further strengthen each of our businesses on a global basis and deliver value to all of our stakeholders.”

Revenue from established and innovative pharmaceuticals, which account for 51% and 28% of total revenue, respectively, dropped by about 5% and 6%, respectively. The drop is attributed to several patents expiring, allowing for stiff competition for a number of drugs.

Vaccines, consumer healthcare and oncology medicines, however, added between 14% and 16% from a year ago.

Meanwhile, Pfizers expenses increased by 4% to $7.520 billion, with research and development adding a good 13% on an annual basis to $1.714 billion.

Also, Pfizer lowered its full-year revenue projection to $48.7 – $50.7 billion, down from $49.2 – $51.2 billion, with focus on more patents expiring, which could hurt performance.

The profit outlook “reflects our financial flexibility and confidence in the business going forward,” Chief Financial Officer Frank DAmelio said in the news release.

Pfizer recently unsuccessfully attempted to acquire UK-based AstraZeneca for a reported $120 billion, in a bid to lower its tax rate by a so-called tax inversion move, in which it would redomicile in the UK, where corporate taxes are 21%, compared to the US 35%.

A number of other US pharmaceutical companies already completed tax inversions, including Mylan and AbbVie, while Hospira also considers the option.

Pfizer Inc was up 0.30% to trade at $30.19 per share at 14:37 GMT, giving the company a market capitalization of $191.80 billion. According to the Financial Times, 16 analysts offering 12 month price targets for Pfizer Inc. have a median target of $34.50, with a high estimate of $41.00 and a low estimate of $30.00. The median estimate represents a 14.62% increase from the last price of $30.10.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Forex Market: USD/CAD daily trading outlookForex Market: USD/CAD daily trading outlook Friday’s trade saw USD/CAD within the range of 1.2618-1.2760. The pair closed at 1.2670, losing 0.52% on a daily basis. It has been the 39th drop in the past 79 trading days. The daily low has been the lowest level since April 20th, when a low […]
  • Grain futures mixed, corn extends losses on favorable weather conditionsGrain futures mixed, corn extends losses on favorable weather conditions Grain futures were mixed on Tuesday with soybeans marking a minor daily advance, while wheat and corn plunged.On the Chicago Board of Trade, corn futures for September delivery traded at $5.3438 at 9:45 GMT, down 1.04% on the day. Prices […]
  • Forex Market: EUR/GBP daily forecastForex Market: EUR/GBP daily forecast During yesterday’s trading session EUR/GBP traded within the range of 0.7957-0.7984 and closed at 0.7958.At 6:25 GMT today EUR/GBP was down 0.04% for the day to trade at 0.7957. The pair touched a daily low at 0.7955 at 00:55 […]
  • Gold rises on Fed stimulus outlook, soft China demand weighsGold rises on Fed stimulus outlook, soft China demand weighs Gold advanced after falling the most in a week on Wednesday on speculations that the Federal Reserve will refrain from scaling back its bond purchases until some point in 2014, most likely in March. Softening physical demand from China and […]
  • Market observations for October 5th, Trading ideas The US indices ended its first session for the week on negative territory, dragged down mainly by techs, and other growth-driven stocks, as investors continue divesting in a rising yields’ environment. The Dow, S&P and Nasdaq deleted […]
  • Crude oil trading outlook: futures swing to losses on inventory jumpCrude oil trading outlook: futures swing to losses on inventory jump Both West Texas Intermediate and Brent crude returned to losses on Wednesday following a dollar-induced rally the prior session as a private report showed a much larger than expected build in US crude oil inventories, while the dollar […]