logo-loader

Pfizer's Q2 earnings beat expectations but suffer due to strength of US dollar

Last updated: 12:24 28 Jul 2015 EDT, First published: 10:24 28 Jul 2015 EDT

drug_research_v2_350_55b79f86933e4
Pfizer was especially strong in sales of ‘innovative’ products, which combined as a unit grew 8.2% for the quarter

Pfizer (NYSE:PFE), the American pharmaceutical company, raised its annual revenue forecast Tuesday, having exceeded expectations in the second quarter thanks to sales of its anti-cancer drug, which enabled it to offset the effects of a strong US dollar.

In the three months ending June 30, net income was US$2.63 billion, down 10% year on year, according to a statement, but, excluding exceptional items, it earned 56 cents a share, higher than the analysts’ predictions of 52 cents a share.

Revenues of US$11.85 billion (-7.2% yoy) also beat expectations of US$ 11.42 billion, but, said the maker of Viagra, they could have been even higher had it not been for the strength of the US dollar, which cheated the company out of some US$1 billion.

Indeed, revenues at Pfizer, which relies on a multinational market, dropped after out of US sales were converted back to US dollars, especially considering the appreciation of the dollar against the euro.

Still, Pfizer, which has also feared competition from a growing generic market in many parts of the world, is more optimistic about confronting this market and raised its annual forecast, which is now in the range of US$45-46 billion instead of US$44 billion while adjusted earnings per share, preferred indicator of investors in North America, should fall between US$2.01 -2.07 rather than US$1.95 -2.05.

Pfizer was especially strong in sales of ‘innovative’ products, which combined as a unit grew 8.2% for the quarter, especially thanks to the Prevnar vaccine against invasive infections such as pneumonia and treatments against cancer.

Conversely, the division covering mature medication records it, a drop in sales of 22%.

Analysts anticipate their side an annual earnings per share around 2.04 dollars and a turnover to 45.98 billion dollars.

 

ARway.ai announces multiple new SaaS developer contracts in both the United...

ARway.ai (CSE:ARWY, OTCQB:ARWYF) Chief Executive Officer Evan Gappelberg joined Steve Darling from Proactive to announce multiple new SaaS developer sign-ups for its augmented reality experience platform, focusing on AR indoor navigation. These partnerships represent significant milestones in...

59 minutes ago