Pfizer Reports 1Q18 Earnings and Revenue Growth

Pfizer (PFE) released its 1Q18 earnings today, reporting another strong quarter for the Innovative health business. The company reported 1% growth in its revenues to $12.9 billion for 1Q18, compared to ~$12.8 billion in 1Q17.

The above chart compares revenues and earnings per share (or EPS) for Pfizer since 1Q17. Pfizer beat Wall Street analysts’ estimates for EPS but missed estimates for revenues. It reported EPS of $0.77 on revenues of ~$12.9 billion, compared to estimates of $0.74 on revenues of ~$13.1 billion in 1Q18.

Pfizer’s top line increased 1% to $12.9 billion in 1Q18, reporting a $430 million favorable impact of foreign exchange—which is ~3% growth. This rise was offset by a decrease of ~2% in operating revenues during the quarter.

US markets reported a 5% decline in revenues to $6.3 billion in 1Q18, compared to revenues of ~$6.6 billion in 1Q17. The decline was driven by a 19% decline in sales of essential health products to $1.7 billion, partially offset by 1% growth in sales of innovative health products to $4.5 billion in 1Q18.

International markets reported 8% growth in revenues to ~$6.6 billion in 1Q18, including 1% operational growth and a 7% favorable impact of foreign exchange.

The Innovative Health business reported growth in revenues of 3% at constant exchange rates to $7.8 billion in 1Q18 and a 3% favorable impact of foreign exchange. The growth in operating revenues was driven by strong sales of Eliquis alliance revenues, Chantix/Champix, Ibrance, Xtandi alliance revenues, Xalkori, Xeljanz, Genotropin, and a few other drugs and consumer healthcare products.

Revenues for the Essential Health business decreased ~9% at constant exchange rates to $5.1 billion in 1Q18. The decline in operating revenues was driven by lower sales of the Premarin family, Medrol, Celebrex and other Peri-LOE products, and Pfizer CentreOne revenues, partially offset by strong sales of Inflectra/Remsima biosimilars and a few other products.

The iShares US Pharmaceuticals ETF (IHE) invests 9.1% of its total portfolio in Pfizer (PFE), 6.4% in Eli Lilly (LLY), 10.5% in Johnson & Johnson (JNJ), and 8.4% in Merck & Co. (MRK).

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