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Analyzing Pfizer’s Revenues in December

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Revenue trends

Pfizer’s net revenues were $39.7 billion in the first nine months of 2018—compared to $38.8 billion during the same period in 2017. Pfizer’s revenues grew ~2% YoY (year-over-year). Pfizer expects that its net revenues for fiscal 2018 will be $53.0 billion–$53.7 billion. Pfizer updated its revenue guidance after the third quarter. Previously, Pfizer expected revenues of $53.0 billion–$55.0 billion for fiscal 2018. Wall Street analysts expect Pfizer to report net revenues of $53.6 billion in fiscal 2018.

Pfizer’s net revenues in the third quarter were $13.3 billion, which reflects 0.99% YoY growth. Wall Street analysts expect Pfizer to generate revenues of $13.9 billion in the fourth quarter, which represents ~1.79% YoY growth.

In the third quarter, Pfizer’s peers in the biopharmaceuticals market, Merck (MRK), Novartis (NVS), and Bristol-Myers Squibb (BMY) generated revenues of $10.8 billion, $12.8 billion, and $5.7 billion, respectively, which reflects ~4.54%, ~2.95%, and ~8.32% YoY growth

Pfizer and Merck’s revenue growth could boost the iShares Edge MSCI USA Momentum Factor ETF’s (MTUM) share price. Pfizer and Merck account for ~3.90% and ~4.02% of MTUM’s total portfolio holdings.

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Innovative and Essential Health segment

Pfizer’s Innovative Health segment mainly increased the revenue growth in the first nine months of 2018. In the third quarter, Pfizer’s Ibrance, Prevnar 13, Xeljanz, and Eliquis in the Innovative Health segment pushed the revenue growth. Pfizer’s Innovative Health segment generated revenues of $24.6 billion in the first nine months of 2018—compared to $23.2 billion during the same period in 2017, which reflects ~6% YoY growth. The company’s Innovative Health segment generated revenues of $8.5 billion in the third quarter, which reflects ~4% YoY growth.

Pfizer’s Essential Health segment witnessed a decline in its revenues during the first nine months of 2018. The company’s Essential Health segment generated revenues of $15.1 billion during the first nine months of 2018, which reflects an ~3% YoY decline. In the third quarter, the Essential Health segment’s revenues declined 4% to $4.8 billion.

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