10-QPeriod: Q1 FY2015

PFIZER INC Quarterly Report for Q1 Ended Mar 29, 2015

Filed May 7, 2015For Securities:PFE

Summary

Pfizer Inc. reported revenues of $10.9 billion for the first quarter of 2015, a 4% decrease compared to the same period in 2014, primarily due to unfavorable foreign exchange impacts. Operationally, revenues saw a 2% increase, driven by strong performance of key products like Prevnar 13 and Eliquis, along with growth in emerging markets. However, this growth was offset by the loss of exclusivity for Celebrex and other products. Net income attributable to Pfizer Inc. was $2.38 billion, a slight increase from $2.33 billion in the prior year. The company highlighted a significant reduction in legal charges, which positively impacted earnings, but this was partially offset by higher research and development expenses and an increased effective tax rate. Pfizer also announced its intention to acquire Hospira for approximately $17 billion, expected to close in the second half of 2015, signaling a strategic move to expand its portfolio.

Financial Highlights

53 data points
Beta

Revenue

$10.86B

83.1% Gross Margin

Net Income

$2.38B

21.9% Net Margin

EPS (Diluted)

$0.38

Total Assets

$160.64B

Cash & Equivalents

$3.56B

Free Cash Flow

$441.00M

Financial Statements
Beta
Revenue$10.86B
Cost of Revenue$1.84B
Gross Profit$9.03B
SG&A Expenses$3.10B
Operating Income$2.37B
Interest Expense$309.00M
Net Income$2.38B
EPS (Basic)$0.38
EPS (Diluted)$0.38
Shares Outstanding (Basic)6.20B
Shares Outstanding (Diluted)6.29B

Key Highlights

  • 1Revenues decreased by 4% to $10.9 billion in Q1 2015 compared to Q1 2014, primarily due to a 7% unfavorable foreign exchange impact, although operational revenue increased by 2%.
  • 2Net income attributable to Pfizer Inc. increased by 2% to $2.38 billion in Q1 2015.
  • 3Earnings per share (EPS) on a diluted basis were $0.38, an increase from $0.36 in the prior year.
  • 4Research and Development (R&D) expenses increased by 16% to $1.89 billion, largely due to an upfront payment for a collaboration agreement.
  • 5The company announced a definitive agreement to acquire Hospira, Inc. for approximately $17 billion, expected to close in the second half of 2015.
  • 6Pfizer repurchased $6.0 billion of its common stock in the first quarter of 2015, demonstrating a commitment to returning capital to shareholders.
  • 7The company's cash dividend paid per common share increased by 8% to $0.28.

Frequently Asked Questions

Pfizer reported revenues of $10.9 billion, a 4% decrease compared to the first quarter of 2014. This decrease was mainly due to a 7% unfavorable foreign exchange impact. Operationally, revenues grew by 2%, driven by key products like Prevnar 13 and Eliquis, as well as emerging market growth, partially offset by losses of exclusivity for products such as Celebrex.

Net income attributable to Pfizer Inc. increased by 2% to $2.38 billion in the first quarter of 2015, compared to $2.33 billion in the same period of 2014. Diluted earnings per share also saw an increase, rising to $0.38 from $0.36 in the prior year.

The most significant strategic development is Pfizer's announcement of its definitive agreement to acquire Hospira, Inc. for approximately $17 billion, a move expected to close in the second half of 2015. This acquisition indicates a strong focus on expanding the company's portfolio. Additionally, Pfizer continued its commitment to shareholder returns by repurchasing $6.0 billion of its common stock during the quarter.

Research and Development (R&D) expenses increased by 16% to $1.89 billion, largely due to a $295 million upfront payment for a collaboration agreement with OPKO Health. Selling, informational, and administrative (SI&A) expenses increased by 2% to $3.10 billion, driven by investments in new product launches and higher branded prescription drug fees, partially offset by favorable foreign exchange and cost-saving initiatives.