Summary
Pfizer Inc. reported first-quarter 2010 revenues of $16.8 billion, a significant 54% increase compared to the same period in 2009. This growth was primarily driven by the inclusion of $5.3 billion in revenues from the recently acquired Wyeth operations and a favorable foreign exchange impact of $733 million, partially offset by a slight decline in legacy Pfizer product revenues. However, net income attributable to Pfizer Inc. decreased by 26% to $2.0 billion, or $0.25 per diluted share, from $2.7 billion, or $0.40 per diluted share, in the prior year. This decline was attributed to increased expenses related to Wyeth integration, purchase accounting adjustments, higher restructuring and acquisition-related costs, increased interest expense, and a higher effective tax rate stemming from U.S. healthcare legislation changes and intangible asset amortization. Financially, Pfizer ended the quarter with total assets of $195.1 billion and total liabilities of $105.0 billion, resulting in shareholders' equity of $90.1 billion. The company's liquidity remains strong, with cash and cash equivalents totaling $1.8 billion, though short-term investments decreased significantly due to tax payments related to the Wyeth acquisition financing. Management reiterated 2010 financial guidance and adjusted 2012 revenue targets, reflecting the impact of the U.S. Healthcare Legislation.
Financial Highlights
49 data points| Revenue | $16.58B |
| Cost of Revenue | $4.20B |
| Gross Profit | $12.37B |
| SG&A Expenses | $4.40B |
| Operating Income | $2.00B |
| Interest Expense | $522.00M |
| Net Income | $2.03B |
| EPS (Basic) | $0.25 |
| EPS (Diluted) | $0.25 |
| Shares Outstanding (Basic) | 8.06B |
| Shares Outstanding (Diluted) | 8.10B |
Key Highlights
- 1Revenues surged by 54% to $16.8 billion in Q1 2010, largely due to the inclusion of Wyeth's results and favorable foreign exchange rates.
- 2Net income attributable to Pfizer Inc. declined by 26% to $2.0 billion, impacted by higher expenses related to the Wyeth acquisition and integration.
- 3Diluted Earnings Per Share (EPS) decreased to $0.25 in Q1 2010 from $0.40 in Q1 2009.
- 4The company reported significant restructuring and acquisition-related costs, primarily associated with the Wyeth integration.
- 5Total assets decreased to $195.1 billion from $212.9 billion at the end of the previous year, while total liabilities also decreased.
- 6Cash flow from operations turned negative at ($6.4 billion) in Q1 2010, a significant shift from positive $3.1 billion in Q1 2009, mainly due to substantial income tax payments.
- 7Pfizer's effective tax rate increased to 36.0% in Q1 2010 from 28.2% in Q1 2009, influenced by several factors including amortization of intangible assets and U.S. healthcare legislation.