Early Access

10-QPeriod: Q2 FY2018

PFIZER INC Quarterly Report for Q2 Ended Apr 1, 2018

Filed May 10, 2018For Securities:PFE

Summary

Pfizer Inc. reported a 1% increase in total revenues for the first quarter of 2018, reaching $12.9 billion, driven by favorable foreign exchange rates and growth in key Innovative Health (IH) products like Ibrance and Eliquis. However, operational revenue saw a 2% decline, impacted by product losses of exclusivity and ongoing legacy Hospira product shortages impacting the Essential Health (EH) segment. Net income attributable to Pfizer Inc. rose by 14% to $3.6 billion, with diluted EPS increasing to $0.59 from $0.51 in the prior year. The company's effective tax rate significantly decreased to 13.5% from 20.8%, largely due to the U.S. Tax Cuts and Jobs Act (TCJA). Pfizer also continued its robust share repurchase program, buying back approximately $6.1 billion worth of stock in the quarter. The company reaffirmed its full-year 2018 financial guidance, projecting adjusted diluted EPS between $2.90 and $3.00.

Financial Highlights

55 data points
Beta

Revenue

$12.91B

0.8% Gross Margin

Net Income

$3.56B

0.3% Net Margin

EPS (Diluted)

$0.59

Total Assets

$164.61B

Cash & Equivalents

$2.30B

Free Cash Flow

$1.60B

Financial Statements
Beta
Revenue$12.91B
Cost of Revenue$2.56B
Gross Profit$10.34B
SG&A Expenses$3.41B
Operating Income$3.56B
Interest Expense$310.00M
Net Income$3.56B
EPS (Basic)$0.60
EPS (Diluted)$0.59
Shares Outstanding (Basic)5.96B
Shares Outstanding (Diluted)6.06B

Key Highlights

  • 1Total revenues increased by 1% to $12.9 billion, driven by foreign exchange tailwinds, while operational revenues declined by 2%.
  • 2Net income attributable to Pfizer Inc. grew by 14% to $3.6 billion, with diluted EPS improving to $0.59.
  • 3The effective tax rate decreased significantly to 13.5% due to the Tax Cuts and Jobs Act (TCJA).
  • 4Innovative Health (IH) segment revenues grew operationally by 3%, driven by strong performance in Ibrance, Eliquis, and Xeljanz.
  • 5Essential Health (EH) segment revenues decreased operationally by 9%, impacted by product losses of exclusivity and manufacturing issues with legacy Hospira products.
  • 6The company repurchased $6.1 billion of its common stock in the quarter.
  • 7Pfizer reaffirmed its full-year 2018 adjusted diluted EPS guidance of $2.90 to $3.00.

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