Pfizer Raised Its Fiscal 2019 EPS Guidance

EPS guidance

In its first-quarter earnings press release, Pfizer (PFE) announced it had raised fiscal 2019 adjusted diluted EPS guidance from $2.82–$2.92 to $2.83–$2.93, which is a rise of $0.01 at the midpoint. The new guidance reflects the change in the company’s estimate for adjusted other income in fiscal 2019 from $100 million to $200 million due to milestone payments recorded in the first quarter.

According to Pfizer’s first-quarter earnings conference call, adjusted other income and some other favorable adjustments have resulted in a favorable impact of $0.03 per share in the company’s fiscal 2019 adjusted diluted EPS guidance. This impact, however, has been partly offset by $0.02 per share worth of negative impact related to foreign exchange movements since mid-January 2019.

Pfizer Raised Its Fiscal 2019 EPS Guidance

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Analysts expect Pfizer’s non-GAAP EPS to change YoY by -3.28% to $2.90 in fiscal 2019, 5.23% to $3.05 in fiscal 2020, and 8.45% to $3.31 in fiscal 2021.

Analysts also expect Pfizer’s non-GAAP EPS to change YoY by -7.24% to $0.75 in the second quarter, -10.71% to $0.70 in the third quarter, and -0.41% to $0.64 in the fourth quarter of fiscal 2019.

Returning value to shareholders

According to Pfizer’s first-quarter earnings conference call, in the first quarter, the company has returned $10.9 billion as dividends and share repurchases to shareholders.

Based on EPS guidance provided in its first-quarter earnings press release, Pfizer’s diluted weighted-average shares outstanding are estimated to be $5.7 billion at the end of fiscal 2019. The company executed share repurchases worth $8.9 billion in the first quarter, which was a key factor driving down the number of diluted weighted average shares outstanding by 307 million despite some share dilution associated with employee compensation programs.