Health and Healthcare
Pfizer Earnings Miss Follows Amgen: Is Merck Next?
Published:
Last Updated:
Drug giant Pfizer Inc. (NYSE: PFE) this morning reported adjusted earnings and revenues that missed analysts estimates, and the stock is down more than 3%. Last week competitor Amgen Inc. (NASDAQ: AMGN) also missed estimates, dragging Pfizer and other companies lower along with it. Tomorrow we get results from Merck & Co. Inc. (NYSE: MRK), so it is worth a look at what is happening.
In Pfizer’s case, the loss in 2011 of patent protection on its Lipitor product has punched a serious hole in the company’s revenues. Sales of Lipitor in the first quarter were down 55% year-over-year. Pfizer also felt a negative impact from the weaker Japanese yen.
Amgen experienced weaker sales from two of its anemia drugs, a drop that could not be overcome by higher sales of its new osteoporosis drug. Sales of its best-selling drug for rheumatoid arthritis were also slightly below expectations.
Merck is expected to post earnings per share (EPS) of $0.79 on revenues of $11.09 billion when it reports earnings tomorrow before the markets open. Three months ago, the consensus estimate for quarterly earnings was $0.90. In the first quarter of 2012, Merck posted EPS of $0.85 on revenues of $11.73 billion.
Shares of all three stocks reached a new 52-week high last week, before starting to slide following Amgen’s report. Amgen is down about 5.5% since reporting results, Pfizer is down about 4.7% and Merck holds onto a tenuous 0.3% gain. For the past year, though, Amgen is up 48%, Pfizer is up 35.5% and Merck is up more than 26%.
Shares of Pfizer are down about 3.5% today, at $29.36 in a 52-week range of $21.40 to $31.15. Shares of Amgen are down about 2.2%, at $104.29 in a 52-week range of $67.61 to $114.95. Shares of Merck are down 1.3%, at $47.16 in a 52-week range of $37.02 to $48.79.
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.