Drug giant Pfizer Inc. (PFE) on Tuesday reported higher profit in its second quarter, above market estimates. Meanwhile, revenues declined and missed analysts’ forecast. For fiscal 2017, the company lifted its forecast for adjusted earnings per share, while maintained revenue view.
For the second quarter, attributable net income climbed 50 percent to $3.07 billion from last year’s $2.05 billion. Earnings per share grew 53 percent to $0.51 from $0.33 a year ago.
Adjusted attributable net income was $4.06 billion or $0.67 per share, compared to $3.93 billion or $0.64 per share a year ago.
Revenues, meanwhile, declined 2 percent to $12.90 billion from prior year’s $13.15 billion. The results were unfavorably impacted by $295 million, or 2%, due to the February 2017 divestiture of Hospira Infusion Systems.
On average, analysts polled by Thomson Reuters expected earnings of $0.66 per share on revenues of $13.08 billion for the quarter. Analysts’ estimates typically exclude special items.
Revenues were comparable operationally with the prior-year quarter.
In the quarter, Innovative Health segment revenues increased 8 percent driven by the performance of key growth drivers, notably Ibrance, Eliquis, Xeljanz and Xtandi. Meanwhile, Essential Health revenues declined 14 percent primarily due to continued headwinds from products that recently lost marketing exclusivity.
The company recorded solid operational growth in emerging markets and in biosimilars.
As of August 1, 2017, Pfizer’s remaining share repurchase authorization was approximately $6.4 billion.
Looking ahead, for fiscal 2017, Pfizer said that the midpoint of the guidance range for adjusted earnings per share was increased by $0.02 to an updated range of $2.54 to $2.60.
The company’s previous forecast was $2.50 to $2.60 per share. The midpoint of new guidance range represents 7% growth compared with last year.
The revision mainly reflects a $300 million increase to the guidance due to lower-than-forecasted net interest expense as well as higher-than-forecasted royalty income from certain products and dividend income from ViiV Healthcare Ltd.
Further, the company continues to expect revenues of $52 billion to $54 billion for the year.
Analysts expect earnings of $2.55 per share on revenues of $52.76 billion for the year.
Ian Read, Chairman and Chief Executive Officer, said, “Over the next five years, we project the potential for approximately 25 to 30 approvals of which up to 15 have the potential to be…