Summary
Pfizer Inc. reported revenues of $12.9 billion for the second quarter of 2017, a 2% decrease compared to the same period in the prior year, impacted by foreign exchange rates and divested operations. Net income attributable to Pfizer Inc. rose to $3.1 billion, or $0.51 per diluted share, up from $2.0 billion, or $0.33 per diluted share, in the second quarter of 2016. This improvement was driven by lower cost of sales, reduced restructuring charges, and a favorable change in "Other (income)/deductions—net", largely due to the absence of significant legal settlements seen in the prior year. The Innovative Health (IH) segment saw revenue growth, boosted by key brands like Ibrance, Eliquis, and Xeljanz, while the Essential Health (EH) segment experienced a revenue decline due to product losses of exclusivity and the sale of its Hospira Infusion Systems business. For the first six months of 2017, revenues were $25.7 billion, also down 2% year-over-year. Net income attributable to Pfizer Inc. increased to $6.2 billion, or $1.02 per diluted share, from $5.1 billion, or $0.82 per diluted share, in the comparable prior-year period. The company continued its share repurchase program, with approximately $6.4 billion remaining authorization at the end of the quarter. Pfizer also reaffirmed its full-year financial guidance, with adjusted diluted EPS expected to be between $2.54 and $2.60.
Financial Highlights
55 data points| Revenue | $12.90B |
| Cost of Revenue | $2.66B |
| Gross Profit | $10.23B |
| SG&A Expenses | $3.43B |
| Operating Income | $6.19B |
| Interest Expense | $312.00M |
| Net Income | $3.07B |
| EPS (Basic) | $0.52 |
| EPS (Diluted) | $0.51 |
| Shares Outstanding (Basic) | 5.96B |
| Shares Outstanding (Diluted) | 6.04B |
Key Highlights
- 1Revenues for Q2 2017 were $12.9 billion, a 2% decrease compared to Q2 2016, primarily due to foreign exchange impacts and the sale of the Hospira Infusion Systems (HIS) business.
- 2Net income attributable to Pfizer Inc. increased to $3.1 billion ($0.51/share) in Q2 2017 from $2.0 billion ($0.33/share) in Q2 2016.
- 3The Innovative Health (IH) segment reported revenue growth of 8% to $7.7 billion, driven by strong performance in key products like Ibrance, Eliquis, and Xeljanz.
- 4The Essential Health (EH) segment saw a revenue decline of 14% to $5.2 billion, impacted by product losses of exclusivity and the sale of HIS.
- 5Research and Development (R&D) expenses increased slightly by 2% to $1.8 billion in Q2 2017, with notable investments in oncology and a new gene therapy agreement.
- 6Amortization of intangible assets rose significantly by 26% to $1.2 billion in Q2 2017, mainly due to recent acquisitions.
- 7Pfizer repurchased approximately $5 billion of its stock through an accelerated share repurchase agreement, reflecting its commitment to returning capital to shareholders.