Pfizer Inc (NYSE:PFE) released its Q4 2017 earnings results before opening bell this morning. Pfizer earnings came in at 62 cents per share on an adjusted basis on $13.7 billion in revenue. Analysts had been looking for earnings of 56 cents per share on $13.67 billion in revenue. In the year-ago quarter, Pfizer reported earnings of 47 cents per share on $13.63 billion in revenue.
Pfizer earnings for Q4 2017
On a reported basis, Pfizer earnings jumped to $2.02 per share, driven by positive impacts from the tax reform bill. In the year-ago quarter, Pfizer’s earnings amounted to 13 cents per share. The company recognized $10.7 billion in favorable impacts from the re-measurement of deferred tax liabilities in connection with the tax reform bill. That includes tax on cash to be repatriated.
Innovative Health revenues rose to $8.2 billion from $7.7 billion a year ago, while Essential Health revenues fell to $5.5 billion from $5.9 billion a year ago.
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“Regarding our revenue performance in 2017, Pfizer Innovative Health was driven by continued strength from several anchor brands, including Ibrance, Eliquis and Xeljanz — all of which currently have market-leading positions with many years of patent protection remaining,” Chairman and CEO Ian Read said in a statement. “Pfizer Essential Health generated strong operational revenue growth in emerging markets and in our Biosimilars portfolio but was negatively – 4 – impacted by the HIS divestiture, the expected impact of product losses of exclusivity and legacy Hospira product shortages in the U.S.”
Pfizer’s guidance beats expectations
Pfizer said this morning that it expects full-year revenue for this year to be between $53.5 billion and $55.5 billion, which is strong compared to the consensus estimate of $53.82 billion. The drug maker expects its adjusted earnings for the full year to be between $2.90 and $3 per share, compared to the consensus estimate of $2.78 per share. Under the new corporate tax rate for 2018, Pfizer expects its adjusted effective tax rate to be about 17%.
The company also announced this morning that it plans to contribute $500 million to its U.S. pension plan this year and pay non-executive employees $100 million in one-time bonuses this year.
Following the Pfizer earnings release this morning, the drug maker’s stock jumped by nearly 1% to as high as $39.30 in premarket trades.