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Pfizer: Analysts Expect Revenue Growth in Q3

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Pfizer’s revenue estimates

As we discussed earlier, analysts expect Pfizer’s (PFE) revenues to be ~$13.5 billion in the third quarter—which is ~2.8% growth compared to revenues of $13.2 billion during the third quarter of 2017. The revenue growth is expected to be driven by innovative health products’ strong performance.

The above chart compares Pfizer’s revenues since the first quarter of 2017 with analysts’ third-quarter estimates.

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Segment-wise expectations

Pfizer’s products are classified into two business segments—the Innovative Health segment and the Essential Health segment.

The Innovative Health business includes pharmaceutical products, vaccines, and consumer health products. During the third quarter, the Innovative Health business is expected to report revenue growth due to strong sales of Ibrance, Genotropin, Xalkori, Xeljanz, Chantix/Champix, and a few other drugs. The revenue growth could also be due to strong sales of consumer healthcare products and increased revenues for the Eliquis and Xtandi alliances.

The Essential Health business includes established pharmaceutical products and a few of the products from Hospira. During the third quarter, the Essential Health business is expected to report lower revenues due to lower sales of Celebrex, Medrol, the Premarin family, and other Peri-LOE products, and lower sales of other established products. The lower revenues could be partially offset by strong sales of biosimilars and a few other products.

Notably, the First Trust NASDAQ Pharmaceuticals ETF (FTXH) holds 8.8% of its total investments in Pfizer, 8.4% in Eli Lilly (LLY), 6.9% in Johnson & Johnson (JNJ), and 4.0% in Bristol-Myers Squibb (BMY).

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