- Pfizer misses analysts’ estimates of revenue and profit in the fourth quarter.
- Pfizer’s Lyrica dropped 68% in terms of quarterly sales that were noted at $433 million.
- Pfizer made 55 cents of earnings per share in Q4 (excluding 1-time items).
According to Pfizer’s quarterly results announced on Tuesday, the American multinational pharmaceutical company lost to analysts’ estimates on both the revenue and profit fronts. The company cited sales of Lyrica (off-patent pain treatment) to have dropped over 50% in the recent quarter. Following the downbeat earnings report, Pfizer was seen trading 3% lower in the stock market.
The largest U.S drug manufacturer had previously announced plans of spinning off the Upjohn unit that has remained under pressure in the past few months. The aforementioned unit is known for Pfizer’s off-patent drugs like Viagra and Lyrica. In 2019, the consumer health business was also separated directed at improving the company’s focus on the more profitable drugs.
Pfizer Recorded $12.69 Billion In Revenue In The Fourth Quarter
The earnings report for the fourth quarter recorded Pfizer’s revenue at $12.69 billion that marked a massive 9% decline. Driven from a higher competition with the generic drugs, Pfizer’s Lyrica dropped 68% in terms of quarterly sales that were noted at $433 million. Revenue was also weighed since the consumer health business no longer contributed to quarterly sales.
Pfizer’s sales-driving Ibrance for patients of breast cancer printed a 13% growth in the fourth quarter to $1.28 billion. Based on Refinitiv’s data, analysts had previously estimated a higher $1.35 billion in Ibrance sales in the recent quarter.
In terms of net loss, Pfizer registered a contraction to 6 cents per share or $337 million in the fourth quarter. The pharmaceutical company also announced on Tuesday that it made 55 cents of earnings per share in Q4 (excluding 1-time items). Experts, however, had forecast a relatively higher 58 cents of earnings per share for Pfizer in the fourth quarter. Operating costs for Pfizer were reported 1% higher in the quarter.
Pfizer Estimates $2.25 to $2.35 Of Earnings Per Share In Fiscal 2020
Following the quarterly results, Pfizer estimated $2.25 to $2.35 of earnings per share in fiscal 2020. The guidance didn’t account for the struggling Upjohn unit. The 3% loss in the stock market on Tuesday has brought the share prices below the opening level for January 2020. At the time of writing, Pfizer is trading at around $38 in the stock market versus $39.14 at which it started the new year.
The second half of 2019 wasn’t too kind with Pfizer and saw the company dropping from a yearly high of around $44 to a low of $34. Recovering much of the drop, the stock closed the last year at around $39.