Earnings Preview: Pfizer

Pfizer (PFE) is expected to report Q3 earnings Tuesday, October 20 before market open, with a conference call scheduled for 10am ET.

Guidance

Analysts are looking for EPS of 48c on revenue of $11.42B. The consensus range is 47c-50c for EPS, and $11.06B-$11.66B for revenue, according to First Call. In July, the company reported Q2 EPS in-line with estimates of 48c on revenue of $11B which was slightly below estimates of $11.28B. At the time of its Q2 release, Pfizer raises its FY09 EPS guidance to $1.90-$2 from $1.85-$1.95, vs. a consensus $1.98.

Analyst Views

The drug giant's completion of the Wyeth deal on October 15 is not expected to have a material effect on this quarter's results. Revenue for Pfizer will be under pressure from the effects of generic erosion to its older drug pipeline like Lipitor. Pressure from generics will hopefully be mitigated by sales in Lyrica, Zyvox, Sutent and Geoden.

Pfizer coverage was resumed with an Overweight from Neutral at JP Morgan. JP Morgan resumed coverage of Pfizer with an Overweight rating, upgraded from its previous rating of Neutral, as the firm expects near-term earnings to beat expectations due to sooner-than-expected Wyeth merger synergies. The firm has a target of $21 on the stock.

Comments

[a. palmer jr.]

The drug giant should put their dividends back to where they were before they reduced them. They appear to have plenty of cash to do so.

2009 Oct 20 09:24 AM