Earnings Preview: Pfizer

Pfizer Inc. (PFE) is expected to report Q2 earnings before market open Wednesday July 23, with a conference call scheduled for July 23 at 11:00 am ET.

Guidance

Analysts are looking for a profit of 54c on revenue of $11.46B. The consensus range is 49c to 58c for EPS, and revenue of $10.87B to $12.00B, according to First Call.

Analyst Views

Possible EPS drivers include increased international sales of Lyrica and Celebrex in conjunction with a weakened dollar and Pfizer's attention to cost cutting. Negative trends that could effect this earning's period include generic competition and weaker Lipitor prescriptions, which accounted for 25% of FY08 revenue. On July 18, Citigroup noted that the company needs additional costs cuts to offset the weakness in the U.S. The firm has a Hold rating and and $18 price target on the shares.

Comments

[Dividend Gr...:]

I think that PFE is a value trap for investors as outlined in my analysis here:

dividendgrowth.blogspo...

The stock could bounce, but unless any major acquisitions are made or new drugs come throught PFe's pipeline, the longer term picture is bleak for PFE.

2008 Jul 22 03:50 PM

[howard_roark:]

I don't think that PFE is a value trap as you pointed out in your article. You made some very good points, but I believe that with the company's history of dividend raises and payouts, it's a good buy and hold at these levels.

I agree that PFE must make an acquisition to bolster its pipeline--I think the company is biding its time to weigh all factors and choose the right target. And I think that target won't be a small cap company--I believe that BMY and SGP are likely takeout targets and this fall I think PFE might make a move. Until then, I hope that PFE maintains its market cap and I hope to continue to collect the fat dividend.

Long term, I think PFE is a good place to be.

2008 Jul 22 05:14 PM

[morgan77:]

Agree Howard_Rock. I'm not sure there are big pipeline issues, though there may be some; I'm comfortable with PFE because of their history..
PFE has a flawless 41-year history of dividend growth and stands to benefit big, along with the entire drug industry as Medicare Part D kicks in over the next few years.
Here's an article by PFE supporter if you're interested in the dividend and management.

www.greenfaucet.com/tr...

Anyone else have any good information about PFE before I jump in?

2008 Jul 23 02:51 PM