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Pfizer's Third Quarter Earnings Report
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Pfizer (NYSE:PFE) announced its results for the most recent quarter on November 1, 2012. Pfizer is a global pharmaceutical company which develops and manufactures prescription medications for humans and animals.
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: 12 Things You Need To Know About Financial Statements
The Numbers: Pfizer managed to beat EPS estimates, though the company's revenues failed to top expectations. The company reported adjusted net income of 53 cents per share versus the 52 cents per share estimate and revenues of $13.98 billion versus the $15.47 billion estimate. Revenue fell 15.9% from the same period last year. The company's net income for the quarter was $3.21 billion. This is a 14.2% decline from last year.
Management Quote: Ian Read, Chairman and Chief Executive Officer, stated, "Overall, our results this quarter reflect continued product losses of exclusivity, most notably Lipitor in all major markets. Despite a challenging and dynamic environment, worldwide revenues from many of our key medicines, including Enbrel, Celebrex and Lyrica, continued to grow operationally. Additionally, we continued to perform well in emerging markets, most notably in China, given the breadth of our portfolio and focused investment."
A Look Back: Net income has increased 54.5% year-over-year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed more than fourfold from the year-earlier quarter.
Looking Ahead: Expectations for the company's next-quarter results are lower than they have been. Over the past 60 days, the average estimate for fourth quarter has fallen from 50 cents per share to 49 cents. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. The average estimate for the fiscal year is $2.20 per share, falling from $2.21 30 days ago.
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: 12 Things You Need To Know About Financial Statements
The Numbers: Pfizer managed to beat EPS estimates, though the company's revenues failed to top expectations. The company reported adjusted net income of 53 cents per share versus the 52 cents per share estimate and revenues of $13.98 billion versus the $15.47 billion estimate. Revenue fell 15.9% from the same period last year. The company's net income for the quarter was $3.21 billion. This is a 14.2% decline from last year.
Management Quote: Ian Read, Chairman and Chief Executive Officer, stated, "Overall, our results this quarter reflect continued product losses of exclusivity, most notably Lipitor in all major markets. Despite a challenging and dynamic environment, worldwide revenues from many of our key medicines, including Enbrel, Celebrex and Lyrica, continued to grow operationally. Additionally, we continued to perform well in emerging markets, most notably in China, given the breadth of our portfolio and focused investment."
A Look Back: Net income has increased 54.5% year-over-year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed more than fourfold from the year-earlier quarter.
Looking Ahead: Expectations for the company's next-quarter results are lower than they have been. Over the past 60 days, the average estimate for fourth quarter has fallen from 50 cents per share to 49 cents. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. The average estimate for the fiscal year is $2.20 per share, falling from $2.21 30 days ago.
by
Investopedia Staff
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