Pfizer's 3Q profit, up due to tax cut, beats expectations

Published 10-30-2018

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Pfizer posted a 45 percent jump in third-quarter profit, as it benefited from sharply lower taxes due to this year's federal tax cut and slightly higher revenue.

The maker of Viagra and nerve pain treatment Lyrica on Tuesday reported net income of $4.11 billion, or 69 cents per share.

Adjusted for one-time gains and costs, the New York drugmaker said income came to 78 cents per share. That beat analyst expectations for earnings of 76 cents per share, according to Zacks Investment Research.

Revenue was $13.3 billion, up 1 percent, led by Lyrica, stroke-preventing pill Eliquis and the Prevnar 13 vaccine against pneumococcal infections that cause ear aches, blood infections and pneumonia.

Pfizer narrowed its full-year profit forecast to earnings per share in the range of $2.98 to $3.02, from its July forecast of $2.95 to $3.05 per share. The company also narrowed and lowered its 2018 revenue forecast to $53 billion to $53.7 billion, down from $53 billion to $55 billion.

Sales of sterile injectable medicines were down 3 percent, as shortages continue for older products due to manufacturing deficiencies Pfizer has been trying to resolve for more than a year.

Longtime CEO Ian Read, who will be succeeded in January by Albert Bourla, Pfizer's chief operating officer, said in a statement that he's confident in the new leadership team Bourla is building. Chief Financial Officer Frank D'Amelio, research head Mikael Dolsten and some other long-term executives will remain in their posts, but new execs will be heading Pfizer's innovative medicines business and its essential heath segment, which sells mostly off-patent drugs.

Pfizer noted that from January through September, it paid out $6 billion in shareholder dividends and bought back $7.2 billion worth of its shares, leaving it with another $7.4 billion authorized for additional share buybacks.

In early t

Longtime CEO Ian Read, who will be succeeded in January by Albert Bourla, Pfizer's chief operating officer, said in a statement that he's confident in the new leadership team Bourla is building. Chief Financial Officer Frank D'Amelio, research head Mikael Dolsten and some other long-term executives will remain in their posts, but new execs will be heading Pfizer's innovative medicines business and its essential heath segment, which sells mostly off-patent drugs.

Pfizer noted that from January through September, it paid out $6 billion in shareholder dividends and bought back $7.2 billion worth of its shares, leaving it with another $7.4 billion authorized for additional share buybacks.

In early trading, Pfizer Inc. shares fell $1.31, or 3 percent, to $41.92. Pfizer shares have climbed 19 percent since the beginning of the year.

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Follow Linda A. Johnson at https://twitter.com/LindaJ_onPharma

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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research.

In early trading, Pfizer Inc. shares fell $1.31, or 3 percent, to $41.92. Pfizer shares have climbed 19 percent since the beginning of the year.

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Follow Linda A. Johnson at https://twitter.com/LindaJ_onPharma

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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research.

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