The 10-second takeaway
For the quarter ended July 1 (Q2), Pfizer met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share expanded significantly.
Margins improved across the board.
Pfizer reported revenue of $15.06 billion. The 13 analysts polled by S&P Capital IQ expected net sales of $14.91 billion on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $16.98 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.62. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.54 per share. GAAP EPS of $0.43 for Q2 were 30% higher than the prior-year quarter's $0.33 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 82.1%, 350 basis points better than the prior-year quarter. Operating margin was 36.4%, 730 basis points better than the prior-year quarter. Net margin was 21.6%, 620 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $14.64 billion. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $59.64 billion. The average EPS estimate is $2.22.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 5,491 members out of 6,083 rating the stock outperform, and 592 members rating it underperform. Among 1,527 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,426 give Pfizer a green thumbs-up, and 101 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pfizer is outperform, with an average price target of $24.92.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Pfizer. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.