Summary
Pfizer Inc. reported revenues of $13.17 billion for the third quarter of 2017, a slight increase of 1% year-over-year, and $38.84 billion for the first nine months of 2017, a 1% decrease. Net income attributable to Pfizer Inc. significantly increased to $2.84 billion in Q3 2017 from $1.36 billion in Q3 2016, reflecting strong operational performance and favorable tax items. The company's Innovative Health (IH) segment saw robust revenue growth of 11% driven by key products like Ibrance and Eliquis, while the Essential Health (EH) segment experienced a revenue decline of 12% due to loss of exclusivity and product shortages. Key financial highlights include a substantial increase in income from continuing operations before taxes, up 123% year-over-year for Q3, driven by higher revenues and lower cost of sales, including the non-recurrence of significant impairment charges from the prior year. The company also continued its share repurchase program, demonstrating a commitment to returning capital to shareholders. Pfizer's effective tax rate increased to 20.3% in Q3 2017 from 15.5% in Q3 2016, primarily due to changes in the jurisdictional mix of earnings.
Key Highlights
- 1Q3 2017 revenues increased 1% to $13.17 billion, while YTD revenues decreased 1% to $38.84 billion.
- 2Net income attributable to Pfizer Inc. surged to $2.84 billion in Q3 2017 from $1.36 billion in Q3 2016.
- 3The Innovative Health (IH) segment reported an 11% revenue increase, driven by strong performance in oncology and immunology products.
- 4The Essential Health (EH) segment saw a 12% revenue decrease, impacted by product shortages and loss of exclusivity.
- 5Research and Development (R&D) expenses remained stable year-over-year at $1.86 billion for Q3 and $5.35 billion for YTD.
- 6Amortization of intangible assets increased by 22% in Q3 and YTD, largely due to recent acquisitions.
- 7Pfizer repurchased approximately 97,000 shares of common stock in Q3 2017 under its ongoing repurchase program.