How PFE’s and BMY’s EPS Trends Compare



Pfizer’s EPS trends

In fiscal 2019, Pfizer (PFE) expects its adjusted diluted EPS to fall 4.0% YoY (year-over-year) to $2.83–$2.93. The company has raised the lower and upper ends of its EPS guidance by $0.01 to reflect the $100 million increase in its adjusted income guidance and currency fluctuation. Analysts expect the company’s non-GAAP EPS to fall 3.04% YoY to $2.91 in fiscal 2019.

These forecasts do not account for Pfizer’s acquisition of Array BioPharma (ARRY). Announced on June 17 and expected to be completed in the second half of fiscal 2019, the deal is projected to dilute Pfizer’s fiscal 2019 and fiscal 2020 adjusted EPS by $0.04 -$0.05, respectively. It is expected to be neutral to its EPS in fiscal 2021, and accretive in fiscal 2022. Pfizer plans to announce changes to its fiscal 2019 guidance associated with the Array BioPharma deal in this year’s third quarter.

Bristol-Myers Squibb’s EPS trends

Bristol-Myers Squibb (BMY) has guided for GAAP EPS of $3.84–$3.94 and non-GAAP EPS of $4.10–$4.20 in fiscal 2019, excluding changes associated with its acquisition of Celgene (CELG).

Bristol-Myers Squibb expects ~40% EPS accretion in the first full year after its Celgene acquisition, and accretion until 2025. In the first three years after the deal’s completion, the company has guided for more than $45 billion in free cash flow, which could drive share buybacks and boost the combined company’s EPS. Bristol-Myers Squibb has guided for cash net income per share of $14.50, $16.90, $17.80, and $19.60 in fiscal 2020, fiscal 2021, fiscal 2022, and fiscal 2023, respectively.

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