Pfizer (PFE) Produces Solid Q2 Earnings


Pfizer (NYSE: PFE)

As expected, Pfizer reported their results for the second quarter before the open of the market on Tuesday; and that report was overwhelmingly positive. Today, we’ll take a look at the report, how investors reacted, and what we can expect to see moving forward. So, let’s get right to it…

What We Saw From The PFE Q2 Report

In the second quarter, PFE out shined analysts expectations with regard to earnings, but missed estimates with regard to top-line revenue…

  • Earnings Per Share – In the second quarter, the company produced earnings per share in the amount of $0.56. Analysts expected this figure to come in at $0.52; $0.04 lower than what was actually reported.
  • Top-Line Revenue – Top line revenue came in at $11 billion for the quarter; missing analyst expectations of $11.42 billion.
  • Updated Guidance – Due to strong performance data, PFE raised 2015 financial guidance ranges by $500 million and earnings per share ranges by $0.04.

In a statement, Ian Read, CEO of PFE had the following to say…

Our second-quarter and year-to-date financial performance is the result of continued business momentum, driven by solid execution of recent product launches in our Innovative Products business, notably lbrance and Prevnar 13in adults in the U.S., along with continued growth from Eliquis and Xeljanz, increased focus on and support of growth initiatives within our Established Products business as well as shareholder-friendly capital allocation. For the remainder of 2015, we look forard to completing the pending acquisition of Hospira, Inc., which we expect will meaningfully enhance our Established Products business, particularly in sterile injectables and biosimilars, and continuing to advance our late-stage pipeline in important areas such as oncology and immuno-oncology, vaccines, rare disease, cardiovascular disease and biosimilars. I continue to see both of our businesses as highly focused, well managed and competitively positioned in their key markets.”

How Investors Reacted To The News

As we’ve come to expect following a positive earnings release, Pfizer is having a bullish day in the market today. Currently (11:48), PFE is trading at $34.95 per share after a gain of 1.78% so far today.

What We Can Expect To See Moving Forward

In my opinion, I think we’re going to see bullish activity in both the short and long term outlooks. In the short term, positive earnings should cause uptrends. However, in the long term, PFE has several catalysts on the horizon. One of them is the acquisition of Hospira. Others revolve around medications that are currently in the late-stage pipeline. All in all, I’m expecting to see great things out of PFE.

What Do You Think?

Where do you think PFE is headed and why? Let us know in the comments below!

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