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Pfizer’s Fiscal 2019 Guidance Disappoints Investors

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Jan. 29 2019, Updated 8:29 a.m. ET

Performance in fiscal 2018

On January 29, Pfizer (PFE) issued a press release announcing financial results for the fourth quarter of 2018 and fiscal 2018. In the fourth quarter of 2018, the company reported total revenues of $13.98 billion, a YoY rise of 2% on a reported basis and 5% on an operational basis. The company reported total revenues of $53.6 billion in fiscal 2018, a YoY rise of 2% on an operational basis and a reported basis. Pfizer has managed to meet consensus revenue estimates in the fourth quarter of 2018 and fiscal 2018. To know more about Pfizer’s consensus revenue estimates, please refer to Is Pfizer Expected to Impress the Market with Its Q4 Results?

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In the fourth quarter of 2018, the company reported adjusted diluted EPS of $0.64, a YoY rise of 3%. The company reported adjusted diluted EPS of $3.00 in fiscal 2018, a YoY rise of 13%. Pfizer has also managed to meet consensus EPS estimates in the fourth quarter of 2018 and fiscal 2018. To know more about Pfizer’s consensus EPS estimates, please refer to Is Pfizer Expecting a Rise in Its Expenses in 2019?

Despite this performance, Pfizer’s stock is trading at $38.75 in the pre-market trading session, which is 1.97% lower than the company’s closing price on January 28, which is mainly attributable to weaker-than-anticipated guidance provided by the company for fiscal 2019.

Wall Street expectations and Pfizer’s guidance

Wall Street analysts expect Pfizer to report revenues of $54.26 billion in fiscal 2019. However, according to the company’s fourth-quarter earnings press release, the company has projected its fiscal 2019 revenues to fall in the range of $52.0 billion to $54 billion.

Wall Street analysts also expect Pfizer to report adjusted diluted EPS of $3.04 in fiscal 2019. However, according to the company’s fourth-quarter earnings press release, the company has projected its fiscal 2019 adjusted diluted EPS to fall in the range of $2.82 to $2.92. Investors are disappointed, as the company’s fiscal 2019 guidance is falling short of the consensus estimates.

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