Pfizer Reports Earnings, Reaffirms Financial Guidance (PFE)

Pfizer PFE reported first-quarter adjusted earnings of $4.8 billion or 60 cents a share, just above the analysts' expectations of 59 cents a share. The adjusted earnings come about from the sale of the Capsugel business and the acquisition of King Pharmaceuticals KING. Adjusted total costs were $9.6 billion, an increase of 3% compared with $9.4 billion compared to the same quarter one year ago. The increase is due in part to the unfavorable impact on foreign exchange of $101 million and also the shift in product mix and business mix from the major acquisition of King Pharmaceuticals. International revenue continued modest improvement of 2% to $9.5 billion while U.S revenue, representing 43% of the company's total revenue, dropped 3% to $7 billion. This is due to emerging markets delivering good operational growth, notably China. Looking towards the future, the company seems to be aggressive on acquisitions and international growth, with CEO Ian Read stating, “Lastly, we remain focused on continuing the evaluation of our business portfolio to determine the optimal mix of businesses to maximize our return.” The company also reaffirmed their 2012 financial guidance targets with revenues expected between $62.2 billion and $64.7 billion, adjusted earnings between $2.25 and $2.35 a share, and operating cash flow of at least $19 billion. They have already repurchased $3.6 billion worth of common stock in 2011 and plans on another $5-$7 billion this year alone. “In the first quarter of this year, we returned approximately $3.0 billion to our shareholders through dividends and share repurchases, clearly demonstrating our commitment to provide greater shareholder return,” Chief Financial Officer Frank D'Amelio said.