Pfizer Delivers on Earnings, Sets 2014 Guidance
Pfizer has managed to handily beat consensus fourth-quarter earnings expectations, at least on the surface. It also offered guidance for 2014 in line with consensus estimates.
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Pfizer Inc. (NYSE: PFE) has managed to handily beat consensus fourth-quarter earnings expectations, at least on the surface. Earnings came to $0.56 per share on $13.6 billion in sales. Thomson Reuters had estimates of $0.52 in earnings per share, but revenue expectations were for $16.27 billion.
The guidance for 2014 was put in a range of $2.20 to $2.30 per share, on revenues of $49.2 billion to $51.2 billion. Thomson Reuters had consensus estimates of $2.28 in earnings per share and revenue of $49.74 billion. Pfizer’s guidance also reflects the anticipated negative impact of approximately $3.0 billion due to recent and expected product losses of exclusivity and a collaboration end. The earnings portion of guidance reflects an anticipated $5 billion in additional share repurchases in 2014.
Pfizer did show that its effective tax rate on adjusted income declined 2.0 percentage points, which fell to 27.7% from 29.7%.
Pfizer shares closed down 1.4% to $29.66 on Monday, and shares were indicated back up just above $30 in early indications Tuesday. Its stock has traded in a 52-week range of $26.79 to $32.50, and the consensus price target is up at $33.17.
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Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
