Drugmaker Pfizer (NYSE: PFE) reported lower revenues and earnings for the third quarter. The results, however, topped the market’s expectations. The management also revised up its full-year earnings and revenue guidance. The stock gained during Tuesday’s premarket session, soon after the announcement.
Revenues up 5%
Total revenues declined 5% year-over-year to $12.68 billion from $13.3 billion in the third quarter of 2018. The topline, however, exceeded the estimates. Segment-wise, Biopharma revenues grew 7% annually to $10.1 billion, while Upjohn revenues dropped 26% to $2.19 billion. Consumer Healthcare revenues were down 55%.
Earnings Beat
Adjusted earnings decreased 2% to $0.75 per share from $0.77 per share last year, but came in above the estimates. Meanwhile, reported net income surged to $7.68 billion, or $1.36 per share from $4.11 billion or $0.69 per share in the prior-year quarter, aided by gains associated with the completion of the consumer healthcare JV transaction with GSK.
Also see: Alexion Pharma Q3 2019 Earnings Snapshot
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“Following the expected close of the Upjohn-Mylan transaction next year, Pfizer RemainCo will be a smaller, science-based company with a singular focus on innovation. We expect Pfizer RemainCo will be positioned to deliver revenue and Adjusted diluted EPS(3) growth that is among the industry leaders while continuing to allocate significant capital directly to shareholders, primarily through dividends,” said CEO Albert Bourla.
Outlook
The management raised the midpoint of the guidance range for full-year revenues by $0.2 billion, to reflect a $0.4 pillion operational improvement that was partially offset by a $0.2 billion unfavorable impact from foreign exchange rates. The midpoint of the adjusted earnings guidance range was revised up by $0.16 per share, to reflecting an $0.18 operational improvement, which was partially offset by a $0.02 foreign exchange impact.
Pfizer shares had a rather unimpressive start to 2019 and lost about 14% since the beginning of the year. The stock closed the last trading session higher, and gained further early Tuesday following the announcement.