Pfizer was set to release its first quarter earnings report before the opening bell on May 3, weeks after the merger with Allergan was called off.
Most of the market experts expect the US drug maker to have a revenue around $11.37 billion to $12.91 billion, while the consensus earnings per share played between $0.52 to $0.58.
In the previous earnings report, the pharmaceutical company had a revenue of $14.05 billion, beating the $13.56 billion consensus estimate. The posted earnings per share was $0.53, surpassing the projected EPS as well.
Evidently, the surge of the revenue on global vaccines by 45 percent to $1.92 billion contributed in the company’s total revenue. Also, Prevnar, Pfizer’s pneumonia vaccine rallied by more than a hundred percent. Prevnar has 6.4 billion courses of drugs sold annually at £100 per course.
In the coming quarterly financial report, shareholders may be interested if the company will increase or lessen its full-year guidance disclosed last February. Also, Pfizer has been expanding its clinical studies. The company introduced Ibrance, a highly advanced breast cancer drug in 2015, and its growth in sales for the first quarter of the year is expected.
The global established products of the company could have driven higher revenue in overseas markets during the first quarter despite the exposure to generic competition.
Meanwhile, Pfizer called off its merger plans with Allergan as the government issued new tax laws which could affect the transaction. Initially, the company wanted to move its tax base to Ireland through the deal since it could escape from the U.S. tax bills of its profits outside the U.S.
However, Smiths Group has expressed its interest to purchase the medical devices of Pfizer worth $2 billion. The engineering conglomerate may use the medical pump units of Pfizer to improve their medical devices division.
“Acquiring something from Pfizer – perhaps just pumps – would now be a very ambitious move. It would likely require a change of mindset from shareholders, but maybe an ambitious Smiths would be welcomed after a hiatus that lasted eight years” an analyst shared.
Earlier today, the shares of Pfizer edged lower at $32.72, a lost of 0.19 or 0.58 percent after opening at $32.87. It had a session high of 32.95 and a session low of 32.43 with a dividend yield of 3.67 percent. The stock has a market capitalization of $201.37 billion and a price earnings ratio of 29.43.
Pfizer has a 52-week price range between $28.25 to $36.46 and an outstanding shares of 6.19 billion. It has a 50-day moving average of $31.38 and its 200-day moving average is $31.72.
The short interest of the company declined 53.8 percent to 149,818,171 shares in total as of April 15. Moreover, the shares of Pfizer are short sold by 2.4 percent.The stock has received a strong Hold rating from 8 analysts while seven issued a Buy rating.
According to Ian Read, Chairman and Chief Executive Officer of Pfizer, the company remains focused on strengthening its innovative and established businesses, and advancing its commercial and late-stage pipeline, while maintaining the financial flexibility to pursue attractive business development and other shareholder friendly capital allocation opportunities.
The pharmaceutical company may have higher long-term revenues if its new drugs will continue to grow until 2021. Pfizer has a strong pipeline and the largest drug manufacturer by sales value globally. Investors remained watchful on the next move of Pfizer after the earnings report.
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