Summary
Pfizer Inc. reported revenues of $16.5 billion for the first quarter of 2011, a slight decrease from $16.6 billion in the prior year period. This was primarily driven by lower revenues from legacy Pfizer products, partially offset by the inclusion of King Pharmaceuticals products and favorable foreign exchange. Net income attributable to Pfizer Inc. increased to $2.22 billion, or $0.28 per diluted share, from $2.03 billion, or $0.25 per diluted share, in the first quarter of 2010. This improvement was supported by a lower effective tax rate and reduced purchase accounting adjustments related to the Wyeth acquisition. The company completed the acquisition of King Pharmaceuticals for approximately $3.6 billion, significantly impacting balance sheet items and introducing new product lines. Pfizer also announced the agreement to sell its Capsugel business for $2.375 billion, with an expected closing in the third quarter of 2011. Significant restructuring charges related to R&D initiatives and ongoing legal matters, particularly hormone-replacement therapy litigation, also impacted the results.
Financial Highlights
50 data points| Revenue | $16.50B |
| Cost of Revenue | $3.69B |
| Gross Profit | $12.81B |
| SG&A Expenses | $4.50B |
| Operating Income | $2.21B |
| Interest Expense | $458.00M |
| Net Income | $2.22B |
| EPS (Basic) | $0.28 |
| EPS (Diluted) | $0.28 |
| Shares Outstanding (Basic) | 7.98B |
| Shares Outstanding (Diluted) | 8.04B |
Key Highlights
- 1Total revenues for Q1 2011 were $16.5 billion, a slight decrease of 0.4% compared to $16.6 billion in Q1 2010, impacted by lower legacy Pfizer product revenues but offset by the King Pharmaceuticals acquisition and favorable foreign exchange.
- 2Net income attributable to Pfizer Inc. increased by 9.7% to $2.22 billion in Q1 2011 from $2.03 billion in Q1 2010.
- 3Diluted Earnings Per Share (EPS) rose to $0.28 in Q1 2011 from $0.25 in Q1 2010.
- 4Pfizer completed the acquisition of King Pharmaceuticals for approximately $3.6 billion, which is reflected in the financial statements from January 31, 2011 onwards.
- 5The company announced an agreement to sell its Capsugel business for $2.375 billion, expected to close in Q3 2011.
- 6Cost of sales decreased by 12%, and R&D expenses decreased by 6% year-over-year, reflecting cost-reduction initiatives and restructuring.
- 7The effective tax rate decreased significantly to 28.7% in Q1 2011 from 36.0% in Q1 2010, driven by the R&D tax credit extension and changes in the mix of earnings.