The largest U.S drug manufacturer Pfizer reports positive full-year earnings; shares rise 1% against yearly increase of 11%
Shares closed on Monday at 32.7, achieving a bounce to 33.25 at market opening but dropping slightly on earnings report.
Forecast: Pfizer predictions of sales were $44.5 billion to $46.5 billion this year, down from $49.6 billion in 2014 to include $3.5 billion losses for exclusivity rights and $2.8 billion lost on foreign-exchange rates. Analysts forecasted $47.6 billion on average.
Actual: Fourth-quarter 2014 reported revenues of $13.1 billion, a 3% rise year on year from 2013; full-year 2014 reported revenues of $49.6 billion
Highlights: Fourth-quarter 2014 adjusted diluted eps(2) of $0.54, reported diluted eps(1) of $0.19; full-year 2014 adjusted diluted eps(2) of $2.26, reported diluted eps(1) of $1.42
Repurchased $1.2 billion and $5.0 billion of common stock in fourth-quarter and full-year 2014, respectively; returned nearly $12 billion to shareholders through share repurchases and dividends in 2014.
Ian Read, Chairman and Chief Executive Officer, stated, “During 2014, despite significant continued revenue headwinds from product losses of exclusivity and co-promote expiries, we were able to deliver modest adjusted diluted EPS(2) growth. This was achieved through a combination of incremental revenue generation from key inline products and recent product launches, responsible expense management as well as supportive capital allocation.”
2015 financial guidance
Frank D’Amelio, Chief Financial Officer, stated, “Regarding our financial performance, we achieved or exceeded all elements of our 2014 financial guidance despite an operating environment that remains challenging.”
He added, “We are also providing our 2015 financial guidance, including ranges for reported revenues(1) of $44.5 to $46.5 billion and for adjusted diluted EPS(2) of $2.00 to $2.10. Our guidance for reported revenues(1) reflects the anticipated negative impact of $3.5 billion due to recent and expected product losses of exclusivity as well as $2.8 billion as a result of recent adverse changes in essentially all foreign exchange rates relative to the U.S. dollar.”
Mr D’Amelio concluded, “Our guidance for reported(1) and adjusted(2) diluted EPS also reflects anticipated share repurchases totaling approximately $6 billion this year, including $715 million of our shares repurchased to date in 2015.”
MT4 chart: PFIZER
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