Summary
Pfizer Inc. reported solid revenue growth in the second quarter and first six months of 2018, driven by operational improvements and favorable foreign exchange rates. The company saw strong performance in its Innovative Health (IH) segment, particularly from key brands like Eliquis, Ibrance, and Xeljanz, along with contributions from new product launches such as Eucrisa and advancements in its vaccine portfolio. The Essential Health (EH) segment experienced a slight revenue decline operationally, impacted by the ongoing transition of Viagra revenues and challenges in the sterile injectable portfolio, though this was partially offset by the shift of Viagra revenues and growth in biosimilars. Overall profitability improved significantly, with income from continuing operations before taxes showing a substantial increase year-over-year. This was driven by revenue growth, favorable changes in equity security valuations, increased income from collaborations, and a lower effective tax rate, partly due to the Tax Cuts and Jobs Act (TCJA) of 2017. Pfizer also maintained a strong cash flow from operations and continued its commitment to returning capital to shareholders through dividends and share repurchases.
Financial Highlights
55 data points| Revenue | $13.30B |
| Cost of Revenue | $2.69B |
| Gross Profit | $10.60B |
| SG&A Expenses | $3.49B |
| Operating Income | $11.54B |
| Interest Expense | $310.00M |
| Net Income | $4.11B |
| EPS (Basic) | $0.70 |
| EPS (Diluted) | $0.69 |
| Shares Outstanding (Basic) | 5.88B |
| Shares Outstanding (Diluted) | 5.99B |
Key Highlights
- 1Revenues increased by 4% year-over-year to $13.5 billion for the second quarter of 2018.
- 2Income from continuing operations before provision for taxes on income increased by 19% year-over-year to $4.5 billion for the second quarter of 2018.
- 3The Innovative Health (IH) segment saw an 8% revenue increase, driven by strong performance in key brands like Eliquis, Ibrance, and Xeljanz.
- 4The company's effective tax rate decreased from 19.4% in Q2 2017 to 14.3% in Q2 2018, benefiting from the Tax Cuts and Jobs Act.
- 5Net cash provided by operating activities increased by 21% to $5.8 billion for the first six months of 2018.
- 6Pfizer continued its capital return program, paying $0.34 per common share in dividends and repurchasing shares.
- 7The company updated its full-year 2018 financial guidance, projecting revenues between $53.0 to $55.0 billion and adjusted diluted EPS of $2.95 to $3.05.