The 10-second takeaway
For the quarter ended June 30 (Q2), Pfizer met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share contracted. GAAP earnings per share increased significantly.
Gross margins grew, operating margins contracted, net margins grew.
Pfizer reported revenue of $12.97 billion. The 12 analysts polled by S&P Capital IQ anticipated revenue of $13.10 billion on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $15.06 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 $0.56. The 16 earnings estimates compiled by S&P Capital IQ anticipated $0.55 per share. Non-GAAP EPS of $0.56 for Q2 were 9.7% lower than the prior-year quarter's $0.62 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.) GAAP EPS of $1.98 for Q2 were 360% higher than the prior-year quarter's $0.43 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 82.7%, 60 basis points better than the prior-year quarter. Operating margin was 34.5%, 190 basis points worse than the prior-year quarter. Net margin was 108.6%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $12.67 billion. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $51.90 billion. The average EPS estimate is $2.16.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 5,491 members out of 6,080 rating the stock outperform, and 589 members rating it underperform. Among 1,556 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,458 give Pfizer a green thumbs-up, and 98 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 $31.50.
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