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Pfizer Third Quarter Earnings Preview
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PFE
When Pfizer (NYSE:PFE) releases its third quarter earnings on Tuesday, October 30, 2012, analysts are expecting a 16.1% drop in earnings from a year ago. The consensus estimate is 52 cents per share, down from earnings of 62 cents per share a year ago.
Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days. SEE: 12 Things You Need To Know About Financial Statements
What to Expect: Three months ago, the consensus estimate was 56 cents. Analysts are projecting earnings of $2.20 per share for the fiscal year.
Pfizer's expected revenue of $14.64 billion for the quarter is below last year's reported figure of $17.19 billion by 14.8%. The anticipated revenue for the fiscal year is $59.47 billion.
Company Performance: Pfizer has reported declines in revenue for the past three quarters. It dropped 11.3% to $15.06 billion in second quarter. Prior to that, the figure declined 6.6% in the first quarter and 4.6% in the fourth quarter of the last fiscal year.
PFE's P/E ratio of 18.7 is above the industry average of 14.48. This could mean that the market is expecting big things over the next few months or years. A company's price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Investment Valuation Ratios: Price/Earnings Ratio
Over the past quarter, the stock price has increased from $23.82 on July 27, 2012 to $25.31. Pfizer's best recent streak was when its price gained $1.08 per share between August 15, 2012 and October 11, 2012.
The Competition: Pfizer is a global pharmaceutical company which develops and manufactures prescription medications for humans and animals. The majority of analysts (15 of 17) give Pfizer a buy rating. The rating has remained steadfast for the past three months.
The company's closest competitor in the major drugs industry is Novartis (NVS). Analysts are more optimistic about Pfizer than about Novartis. Only six out of nine analysts rate the latter a buy.
Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days. SEE: 12 Things You Need To Know About Financial Statements
What to Expect: Three months ago, the consensus estimate was 56 cents. Analysts are projecting earnings of $2.20 per share for the fiscal year.
Pfizer's expected revenue of $14.64 billion for the quarter is below last year's reported figure of $17.19 billion by 14.8%. The anticipated revenue for the fiscal year is $59.47 billion.
Company Performance: Pfizer has reported declines in revenue for the past three quarters. It dropped 11.3% to $15.06 billion in second quarter. Prior to that, the figure declined 6.6% in the first quarter and 4.6% in the fourth quarter of the last fiscal year.
Over the past quarter, the stock price has increased from $23.82 on July 27, 2012 to $25.31. Pfizer's best recent streak was when its price gained $1.08 per share between August 15, 2012 and October 11, 2012.
The Competition: Pfizer is a global pharmaceutical company which develops and manufactures prescription medications for humans and animals. The majority of analysts (15 of 17) give Pfizer a buy rating. The rating has remained steadfast for the past three months.
The company's closest competitor in the major drugs industry is Novartis (NVS). Analysts are more optimistic about Pfizer than about Novartis. Only six out of nine analysts rate the latter a buy.
by
Investopedia Staff
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