On its fourth-quarter earnings conference call, Pfizer (PFE) said that it expected its 2019 adjusted diluted EPS to be $2.82–$2.92, which doesn’t include gains and losses on equity investments. The company expects a flat YoY (year-over-year) adjusted EPS performance at the midpoint of the guidance range, excluding $900 million worth of anticipated negative revenue impact or $0.06 worth of EPS impact from foreign currency fluctuations at 2018 foreign exchange rates. Pfizer expects to make share repurchases worth $9.0 billion in 2019.
Pfizer, however, has guided for generic erosion headwinds worth $2.6 billion in 2019, a YoY rise of almost $900 million. The rise is mainly associated with the expected LOE (loss of exclusivity) of Lyrica in June 2019. However, after Lyrica’s revenue stabilizes, the company has projected an LOE-free period until 2025. According to its fourth-quarter earnings conference call, Pfizer expects YoY mid-single-digit revenue growth for five years starting in 2021, with its 2020 revenue serving as a base value.
Ready to put your morning scrolling to use? Sign up for Bagels & Stox, our witty take on the top market and investment news straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.
On its fourth-quarter earnings conference call, AstraZeneca (AZN) guided for its core EPS at constant exchange rates to fall in the range of $3.50–$3.70.
Wall Street’s projections
Wall Street analysts expect Pfizer’s non-GAAP (generally accepted accounting principles) EPS to be $2.89, $3.06, and $3.38, respectively, in 2019, 2020, and 2021, implying YoY changes of -3.74%, 6.02%, and 10.39%, respectively.
On the other hand, Wall Street analysts expect AstraZeneca’s non-GAAP EPS to be $1.71, $2.10, and $2.67, respectively, in 2019, 2020, and 2021, implying YoY changes of -1.04%, 22.43%, and 27.39%, respectively.
Pfizer is expected to report higher absolute non-GAAP EPS but a lower compound average growth rate in its EPS than AstraZeneca from 2019 to 2021.