Pfizer Beats on EPS but GAAP Results Lag
Pfizer (NYS: PFE) reported earnings on Jan. 31. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Pfizer met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share increased significantly.
Gross margins grew, operating margins dropped, and net margins dropped.
Pfizer logged revenue of $16.75 billion. The 16 analysts polled by S&P Capital IQ expected to see revenue of $16.66 billion. Sales were 4.6% lower than the prior-year quarter's $17.56 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.50. The 19 earnings estimates compiled by S&P Capital IQ predicted $0.47 per share on the same basis. GAAP EPS of $0.18 for Q4 were 49% lower than the prior-year quarter's $0.36 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 76.7%, 80 basis points better than the prior-year quarter. Operating margin was 16.4%, 280 basis points worse than the prior-year quarter. Net margin was 8.6%, 790 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $15.55 billion. On the bottom line, the average EPS estimate is $0.58.
Next year's average estimate for revenue is $63.04 billion. The average EPS estimate is $2.30.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 5,492 members out of 6,087 rating the stock outperform, and 595 members rating it underperform. Among 1,492 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,402 give Pfizer a green thumbs-up, and 90 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 $23.13.
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