Inside Pfizer’s 3Q17 Earnings: An Overview
A look at Pfizer’s earnings
Pfizer (PFE) released its 3Q17 earnings on October 31, 2017, reporting another strong quarter in its Innovative Health business. The company reported a 1% growth in its revenues to nearly $13.17 billion for 3Q17, compared with $13.05 billion in 3Q16.
This growth was mainly driven by strong performance of Ibrance, Xtandi, and Xeljanz.
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Pfizer missed the Wall Street analysts’ estimate for revenues in 3Q17 but surpassed the analysts’ estimates for EPS (earnings per share), reporting EPS of $0.67, compared with the estimate of $0.64 on revenues of $13.18 billion.
Pfizer’s reported an operational growth of 1% in 3Q17, partially offset by a marginal fall of $54 million due to the negative impact of foreign exchange during the quarter. This growth was also impacted by the divestiture of Hospira Infusion systems completed in 1Q17.
Upon excluding the impact of divestitures and foreign exchange, revenues rose 2% during 3Q17.
US markets reported nearly flat revenues at $6.53 billion for 3Q17, contributing ~49.6% of total revenues. International markets reported 2% growth in revenues to $6.63 billion, including 3% operational growth, offset by a 1% negative impact of foreign exchange.
The Innovative Health business reported 11% growth in revenues at constant exchange rates for 3Q17, driven by the strong performance of Eliquis and Ibrance inside and outside the US. This growth was also driven by increased sales of Lyrica and Xeljanz in the US and the inclusion of US sales of Xtandi as a result of the Medivation acquisition in September 2016.
This growth was substantially offset by an 11% fall in revenues at constant exchange rates in the Essential Health business, which included a 5% decline due to the divestiture of Hospira Infusion systems and a fall in product sales due to the poorer performance of Peri-LOE products and sterile injectable products. These declines were partially offset by the growth in biosimilars.