Pfizer Inc., Procter & Gamble Co Edge Out Earnings Estimates

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Pfizer Inc., Procter & Gamble Co Edge Out Earnings Estimates
By Pfizer [Public domain], via Wikimedia Commons

Shares of Pfizer edged downward by as much as 0.21% to $32.73 per share in premarket trading, while Procter & Gamble stock was flat as of this writing at $89.58 per share

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Pfizer and Procter & Gamble released their latest quarter earnings reports before opening bell this morning. Pfizer posted adjusted earnings of 54 cents per share on $13.1 billion in revenue. Analysts had been expecting the drug maker to post earnings of 53 cents per share on $12.9 billion in revenue.

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Procter and Gamble reported core earnings of $1.06 per share, compared to $1.15 per share last year, on net sales of $20.2 billion, a 4% decline year over year. Analysts had been expecting the company to post earnings of $1.13 per share on $21.37 billion in revenue.

Key metrics from Pfizer’s earnings report

Reported earnings per share for Pfizer were 19 cents. For the full 2014 fiscal year, adjusted earnings were $2.26 per share, while reported earnings were $1.42 per share. Pfizer’s Established Products Business reported a 7% operational decline in revenue due to falling Lipitor revenues in developed markets. The drug maker also loss exclusivity on Detrol LA in the U.S. in January 2014 and on Aricept in Canada in December 2013.

The company’s Innovative Products Business saw a 6% operational increase in revenue due to strong growth from Lyrica, especially in the U.S. and Japan. Pfizer’s other new drugs also saw strong growth, although the expiration of the collaboration agreement for Enbrel ended and partially offset the growth.

Pfizer management said this morning they expect revenue for this year to be between $44.5 billion and $46.5 billion, compared to the FactSet consensus estimate of $47.4 billion. They expect adjusted earnings to be between $2 and $2.10 per share, missing the consensus estimate of $2.16 per share.

Key metrics from Procter & Gamble’s earnings report

Procter & Gamble posted net earnings of 82 cents per share for the second fiscal quarter. The consumer products manufacturer reported a 1% decline in Beauty, Hair and Personal Care and a 2% increase in its Grooming business. Sales in Procter & Gamble’s Health Care business rose 1%, while Fabric Care and Home Care organic sales rose 3%. Sales from the Baby, Feminine and Family Care rose 4%. Duracell was reported as discontinued operations due to the sale of the business to Berkshire Hathaway.

Procter & Gamble management also said this morning they expect core earnings per share for this year to be flat to down by low single digits year over year. They cited foreign exchange rates as a major cause for falling sales and earnings this year.

 

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Michelle Jones is editor-in-chief for ValueWalk.com and has been with the site since 2012. Previously, she was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Email her at Mjones@valuewalk.com.
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