Summary
Pfizer Inc.'s (PFE) second-quarter 2011 results show relatively stable revenues compared to the prior year, with $17.0 billion for the quarter and $33.5 billion for the first six months. While facing headwinds from patent expirations of key drugs like Lipitor and Effexor XR, and a reduction in revenue due to U.S. healthcare legislation, the company benefited from growth in products like the Prevnar franchise and Lyrica, along with favorable foreign exchange rates and the inclusion of King Pharmaceuticals. Net income from continuing operations increased year-over-year for both the quarter and the first six months, reaching $2.6 billion and $4.8 billion, respectively. This was driven by increased revenues, improved operating efficiency, and a significantly lower effective tax rate in 2011 compared to 2010. The company also made progress on strategic initiatives, including the sale of its Capsugel business and exploration of alternatives for its Animal Health and Nutrition segments. Despite ongoing patent challenges and a complex operating environment, Pfizer maintained a strong liquidity position.
Financial Highlights
50 data points| Revenue | $16.48B |
| Cost of Revenue | $3.57B |
| Gross Profit | $12.91B |
| SG&A Expenses | $4.80B |
| Operating Income | $4.64B |
| Interest Expense | $404.00M |
| Net Income | $2.61B |
| EPS (Basic) | $0.33 |
| EPS (Diluted) | $0.33 |
| Shares Outstanding (Basic) | 7.88B |
| Shares Outstanding (Diluted) | 7.93B |
Key Highlights
- 1Total revenues for the six months ended July 3, 2011, were $33.5 billion, a slight decrease of 1% compared to $33.7 billion in the same period of 2010.
- 2Net income attributable to Pfizer Inc. increased to $2.61 billion in Q2 2011 from $2.48 billion in Q2 2010, and to $4.83 billion for the six months ended July 3, 2011, from $4.50 billion in the prior year.
- 3Diluted earnings per share were $0.33 for Q2 2011 and $0.61 for the six months, up from $0.31 and $0.56, respectively, in the prior year periods.
- 4The company completed the acquisition of King Pharmaceuticals, Inc. in early 2011 for approximately $3.6 billion.
- 5Pfizer announced its intention to explore strategic alternatives for its Animal Health and Nutrition businesses.
- 6Revenues were impacted by patent expirations for key products such as Lipitor and Effexor XR, but this was partially offset by growth in products like Prevnar and Lyrica, and favorable foreign exchange rates.
- 7The effective tax rate decreased significantly in 2011 due to the extension of the U.S. research and development credit and a change in the jurisdictional mix of earnings.