Will Pfizer Inc. (PFE) Earnings Continue To Top Expectations?


Pfizer Inc. (NYSE:PFE) will be releasing its financial numbers on Tuesday before the market opens. All eyes are on the stock since its earnings topped the Street analysts’ predictions at least in the last four quarters. The company might not have been successful in its bid to buy AstraZeneca plc (ADR) (NYSE:AZN) during the year 2014. However, it pursued its own course of action.

Factors To Consider

One of the favorable factors was the positive revision in earnings expectations of Pfizer Inc. (NYSE:PFE) among analysts very recently. Quite often analysts’ revise their earnings expectations either upward or downward based on the information available to them. Given that fact, their revision could suggest that the company is likely to continue its beating streak of expectations.

The company has been witnessing a loss of revenue due to a number of drugs going generic. As a result, it has been struggling for growth in revenue in the last several quarters. The latest drug to join the generic list of drugs was Celebrex during the fourth quarter.

During the first nine-month period of the year 2014, Pfizer Inc. (NYSE:PFE) generated Worldwide revenues of $2.15 billion from Celebrex. Similarly, the company also faces pressure from alliance revenues as collaboration for products such as Enbrel expired. The company might be in the danger of losing approximately $750 million as a result of the fall in alliance revenues and loss of exclusivities.

Significantly, the drug maker expects LOE effect to continue till the year 2016 following which the impact size would come down drastically. The strong currency of Greenback would also have an unfavorable effect on its top line due to its international presence.

Earnings Expectations

Wall Street analysts’, on average, predict Pfizer Inc. (NYSE:PFE) to earn 53 cents a share as profit on revenues of $12.95 billion for the fourth quarter. This indicated that analysts expectations of EPS and revenues to witness a drop of 5.4% and 4% respectively. In the last four quarters, the company’s EPS topped predictions between 1.8% and 7.7%.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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