Summary
Pfizer Inc. reported revenues of $12.1 billion for the third quarter of 2015, a slight decrease of 2% compared to the prior year, primarily impacted by unfavorable foreign exchange rates. Operationally, revenues saw a 6% increase, driven by strong performance from key innovative products like Prevnar 13, Ibrance, and Eliquis, as well as the inclusion of one month of Hospira's U.S. operations following its acquisition in September 2015. The company's income from continuing operations for the quarter was $2.1 billion, down 20% year-over-year, impacted by higher restructuring charges and asset impairments, although partially offset by a lower effective tax rate and reduced operating expenses. For the first nine months of 2015, total revenues decreased by 5% to $34.8 billion, with operational growth significantly hampered by an 8% unfavorable foreign exchange impact. Net income from continuing operations for the nine-month period was $7.1 billion, a 9% decrease from the previous year, also affected by increased restructuring and impairment charges, but benefiting from a lower effective tax rate and reduced cost of sales and administrative expenses. The company reaffirmed its full-year 2015 financial guidance, with an updated outlook for reported revenues and adjusted diluted EPS, reflecting the operational performance and the Hospira acquisition.
Financial Highlights
54 data points| Revenue | $12.09B |
| Cost of Revenue | $2.22B |
| Gross Profit | $9.87B |
| SG&A Expenses | $3.27B |
| Operating Income | $7.12B |
| Interest Expense | $278.00M |
| Net Income | $2.13B |
| EPS (Basic) | $0.35 |
| EPS (Diluted) | $0.34 |
| Shares Outstanding (Basic) | 6.17B |
| Shares Outstanding (Diluted) | 6.24B |
Key Highlights
- 1Total revenues for Q3 2015 were $12.1 billion, a 2% decrease year-over-year, primarily due to foreign exchange headwinds, though operational revenue increased by 6%.
- 2Net income from continuing operations for Q3 2015 was $2.1 billion, a 20% decrease from the prior year, influenced by increased restructuring and impairment charges.
- 3The acquisition of Hospira for approximately $16 billion was completed in September 2015, with its U.S. operations contributing $330 million in revenue during the third quarter.
- 4Key product performance highlights include strong growth for Prevnar 13 (vaccine), Ibrance (oncology), and Eliquis (cardiovascular).
- 5Significant revenue declines were seen in Celebrex and Zyvox due to loss of exclusivity and resulting generic competition.
- 6Research and Development (R&D) expenses increased by 3% for the first nine months of 2015, driven by upfront payments for collaborations and pipeline investments.
- 7The company maintained a strong liquidity position with $3.1 billion in cash and cash equivalents and $17.6 billion in short-term investments as of September 27, 2015.