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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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 position in any of the stocks mentioned. 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.