Summary
Pfizer Inc. reported a 7% decrease in total revenues for the first quarter of 2012, reaching $15.4 billion compared to $16.5 billion in the prior year period. This decline was primarily driven by the loss of exclusivity for key products like Lipitor in the U.S. and unfavorable foreign exchange rates. Net income also saw a significant drop of 19% to $1.8 billion, or $0.24 per diluted share, down from $2.2 billion, or $0.28 per diluted share, in Q1 2011. The company incurred substantial "certain significant items" totaling $1.45 billion net of tax, largely due to higher litigation charges and asset impairment charges, which impacted profitability. Despite these challenges, Pfizer continued its portfolio transformation, announcing the sale of its Nutrition segment to Nestlé for $11.85 billion, expected to close in the first half of 2013. Looking ahead, Pfizer reaffirmed its commitment to strengthening its core businesses and enhancing shareholder value through dividends and share repurchases. The company's strategic focus remains on key therapeutic areas, and it is actively managing its R&D pipeline and cost structure to navigate the evolving pharmaceutical landscape. Investors should note the ongoing impact of patent expirations and the company's efforts to adapt to market changes.
Financial Highlights
52 data points| Revenue | $14.88B |
| Cost of Revenue | $2.75B |
| Gross Profit | $12.14B |
| SG&A Expenses | $3.97B |
| Operating Income | $1.72B |
| Interest Expense | $390.00M |
| Net Income | $1.79B |
| EPS (Basic) | $0.24 |
| EPS (Diluted) | $0.24 |
| Shares Outstanding (Basic) | 7.54B |
| Shares Outstanding (Diluted) | 7.60B |
Key Highlights
- 1Total revenues decreased by 7% to $15.4 billion in Q1 2012, primarily due to Lipitor's loss of U.S. exclusivity and unfavorable foreign exchange.
- 2Net income attributable to Pfizer Inc. fell by 19% to $1.79 billion, with diluted EPS down to $0.24 from $0.28 in the prior year.
- 3The company incurred significant "certain significant items" of $1.45 billion (net of tax), largely driven by increased legal charges (including a $450M settlement provision for Brigham Young University) and asset impairment charges.
- 4Pfizer announced the agreement to sell its Nutrition segment to Nestlé for $11.85 billion, with the transaction expected to close in the first half of 2013.
- 5Cost of sales decreased by 19% and Selling, Informational, and Administrative (SI&A) expenses decreased by 8%, reflecting cost-reduction initiatives and the impact of product exclusivity losses.
- 6Research and Development (R&D) expenses remained relatively stable, decreasing by 1% to $2.07 billion, impacted by productivity initiatives and offsetting charges.
- 7The company continued its share repurchase program, buying back approximately $1.7 billion of common stock in Q1 2012.