Pfizer Inc. (NYSE:PFE) released the results from its first fiscal quarter this morning, posting adjusted earnings per share of 57 cents on $11.35 billion in revenue, a 9% year over year decline. Analysts had been expecting earnings per share of 55 cents on $12.1 billion in revenue.
Breaking down Pfizer’s earnings
Reported earnings per share were 36 cents. Profits fell 15% to $2.33 billion during the quarter. Pfizer Inc. (NYSE:PFE) noted that at the beginning of this year, it began managing commercial operations three a new structure made up of three operating segments. Those divisions are the Global Innovative Pharmaceutical division, the Global Vaccines, Oncology, and Consumer Healthcare division and the Global Established Pharmaceutical division.
Revenues for the Global Established Pharmaceutical division fell 10% operationally because of patent expirations for the overactive bladder drug Detrol LA in the U.S. and the erectile dysfunction drug Viagra in most European markets last year. The company also noted a decline in branded cholesterol drug Lipitor revenues in several markets because of more generic competition. The fibromyalgia drug Lyrica performed well during the quarter.
Revenues for the Global Innovative Pharmaceutical division fell 4% operationally mostly because of the end of the co-promotion term of the collaboration agreement for the arthritis drug Enbrel in Canada and the U.S. Revenues for the Global Vaccines division grew 2% operationally because of strong performance of the pneumococcal vaccine Prevnar 13.
Revenues for the Consumer Healthcare segment fell 3% operationally due to a decline in respiratory product demand because of a less severe cold and flue season. Revenues for the Global oncology segment rose 10% operationally due to solid uptake of new products, especially the anti-cancer drugs Xalkori and Inlyta.
The drug maker also noted that first quarter earnings were negatively impact by the spinoff of its Animal Health business.
Pfizer buys back stock
So far this year, Pfizer Inc. (NYSE:PFE) has repurchased $1.7 billion worth of its common shares.
The pharmaceutical company noted that it is unable to update reported earnings per share guidance for the year due to its proposed merger with AstraZeneca plc (ADR) (NYSE:AZN) (LON:AZN). The U.K. Takeover Code prohibits updated guidance in this scenario. The company did reaffirm all other parts of its adjusted guidance, however. Pfizer Inc. (NYSE:PFE) expects adjusted revenues of between $49.2 billion and $51.2 billion and adjusted earnings per share of between $2.20 and $2.30 per share.