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Pfizer (NYSE:PFE), which had previously forecast modest revenue growth, said when it reported earnings on October 19 that it now sees little change in 2007 and 2008 due to a strengthening U.S. dollar and European "access and pricing" issues. The company said it is trying to cut costs above the $4 billion annual savings already envisioned through the Adapting to Scale program. Pfizer also said it will buy back up to $10 billion in shares in 2007.

"Pfizer needs to be realistic about its operating environment, embrace necessary changes and turn them to our advantage, for the benefit of our shareholders and everyone with a stake in our future," said Chief Executive Officer Jeffrey B. Kindler.

The company said it expects its restructuring program to yield savings of about $2.5 billion this year, $500 million ahead of earlier projections.

U.S. sales of cholesterol buster Lipitor rose 19% to $2.07 billion from $1.74 billion, helped by higher prices and the new Medicare drug plan. Global sales of Lipitor, the world's top-selling drug, rose 15% to $3.32 billion from $2.9 billion.

Financials
Source: Yahoo Finance
Price per share: $28.29
Market Cap (intraday): 206.28B
Enterprise Value (19-Oct-06)3: 199.52B
Trailing P/E (ttm, intraday): 19.18
Forward P/E (fye 31-Dec-07) 1: 13.41
PEG Ratio (5 yr expected): 4.06
Price/Sales (ttm): 4.00
Price/Book (mrq): 2.99
Enterprise Value/Revenue (ttm)3: 3.90
Enterprise Value/EBITDA (ttm)3: 9.09
Profit Margin (ttm): 21.19%
Return on Assets (ttm): 9.19%
Return on Equity (ttm): 16.23%

Why is Pfizer a potential purchase?

1. Many super-investors own Pfizer (Tweedy Browne, Marty Whitman, Arnold Van Den Berg, Bill Miller, etc.) Please visit: GuruFocus.
2. Management is doing the right things of cutting costs, buying back shares, and increasing dividends.

PFE 1-yr chart:

PFE 1-yr chart

Happy investing.

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Source: Time To Buy Pfizer?