Pfizer Inc. (NYSE: PFE) is scheduled to release its third-quarter financial results before the markets open on Tuesday. The consensus estimates from Thomson Reuters are $0.62 in earnings per share (EPS) and $13.05 billion in revenue. The same period of last year reportedly had EPS of $0.60 and $12.09 billion in revenue.

In the quarter, the company announced that it will abandon its plan to split into two companies. This pharmaceutical giant ultimately determined that this was not the best course of action to maximize future shareholder value.

As the company previously indicated, the process for making a decision was guided by criteria that included evaluating the performance of each business within Pfizer, determining if each business could compete as a stand-alone entity, assessing if trapped value existed in a combined entity and if any trapped value could be unlocked efficiently. In addition, the company evaluated whether key strategic and operating imperatives could best be achieved in the current structure versus two, separate publicly traded companies.

Pfizer believes it is poised to grow its Innovative Health and Essential Health businesses, so that they can be leaders in their markets. Since 2010, Pfizer received 20 new drug approvals and launched multiple products to address patients unmet medical needs. Also the company has established an industry leading portfolio of sterile injectables, biosimilars and effective, high-value treatments that have lost their market exclusivity. Keeping both together, makes more sense from a value perspective.

A few analysts weighed in on Pfizer prior to the earnings report:

• Sanford Bernstein has a Buy rating with a $36 price target.
• BMO Capital Markets reiterated an Outperform rating with a $40 price target.
• Jefferies has a Hold rating.
• Argus reiterated a Buy rating with a $39 price target.
• Merrill Lynch has a Buy rating with a $40 price target.
• Piper Jaffray has a Buy rating with a $54 price target.

So far in 2016, Pfizer has underperformed the broad markets, with the stock down about 1.5%. Over the past 52 weeks, the stock was down 9%.

Shares of Pfizer were trading at $31.65 on Monday morning, with a consensus analyst price target of $38.74 and a 52-week trading range of $28.25 to $37.39.

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