Pfizer lowers 2015 guidance on the back of negative dollar effects on sales. 1Q earnings and revenue exceed analysts’ forecast.
Pfizer Inc. announced its first quarter earnings reports for fiscal year 2015 on Tuesday April 28. While the quarter outcomes was able to beat analysts estimations, the company reduced its full year FY15 projection blaming the strengthening US dollar, which diminished the positive earnings impact.
The pharmaceutical company reported earnings of $0.51 per share slightly better than analysts’ estimate of $0.50 a share. First quarter sales came in at $10.9 billion as compared to consensus forecast of $10.8 billion.
Chairman and Chief Executive Officer of Pfizer, Ian Reads said in a statement, “We began the year with good performance on both the top and bottom line and I believe the company is well-positioned in terms of in-line products, recent product launches, geographic reach and product pipeline.”
After the earnings announcement, the company reviewed its full year FY15 EPS projection to $1.95 to $2.05 per share, lower than previous estimate of $2 to $2.10 a share and consensus forecast of $2.07 per share. Sales guidance was also reduced to $44 billion to $46 billion from previous $45.9 billion.
The reason came out to be negative impact of US dollar that reduced Pfizer revenue in 1QFY15. The company earned a large chunk of its profit from international markets, last quarter only 38.5% sales come from the United States.
The positive 1QFY14 sales number was due to sale of Pfizer’s best seller cancer drug, Ibrance. Almost 38.5% of sales come from Ibrance surpassing consensus estimate of $22 million by large margin. The drug is projected to make around $3.39 billion by the end of 2018, and will help the company to get out if sales void left by previously patented drugs. Ibrance is currently priced at $9,850 a month equals to $118,200 per year, which makes it a significant revenue source.
In February, Ibrance was permitted by United States Food and Drug Administration for the treatment of breast cancer. During the start of this month, Preliminary studies the outcomes of Ibrance in different breast cancer patients, the results were so extraordinary that the research was stopped early. Later in 2015, the data from the study will be presented at “The American Society of Clinical Oncology”.
Pfizer stock went down by 0.32% to $34.48 at market close on Tuesday April 28.