Pfizer's Q4 Earnings Fall More Than Expected

Investing.com – Pfizer (NYSE:) said it expects underlying revenue growth of around 8% this year as it carves out another of its main divisions into a separate company.

The company said that after folding its Upjohn unit into pharma rival Mylan (NASDAQ:), it expects operational growth of around 8%. However, earnings per share, adjusted for foreign exchange swings, are expected to fall by around 3.3% to a range around $2.89.

The Upjohn deal is Pfizer’s second big corporate action in a year, after spinning off its consumer health unit into a joint venture with GlaxoSmithKline last year.

Pfizer (NYSE:) ended 2019 on a comparatively weak note. It said adjusted diluted earnings per share fell 13% on the year in the fourth quarter to 55c, on a 9% drop in revenue to $12.69 billion.

Analysts polled by Investing.com anticipated EPS of $0.58 on revenue of $12.61 billion.

Analysts are expecting EPS of $0.72 and revenue of $11.7 billion in the upcoming quarter.

Pfizer (NYSE:) stock is currently 10% below the record high it set last July, amid fears about the loss of patent protection for key drugs in the coming years.

“The biggest challenge that Pfizer is facing over the next few years is how to make up for the pending loss of patent protection,” said Investing.com analyst Haris Anwar. “Some of its top revenue-generating products — Xeljanz, Ibrance, Xtandi, Eliquis and Tafamidis — all are losing patent protection from 2025 to 2029.

To mitigate the impact of revenue loss, Pfizer is trying to reorganize its business, spending heavily in developing new drugs and buying companies whose success is uncertain.

“In the short run, the company’s revenue growth is dependent on its more established prescription drugs and cancer drugs that now make up more of Pfizer’s revenue than any other segment,” Anwar added.

Pfizer follows other major Healthcare sector earnings this month

On January 22, J&J reported fourth quarter EPS of $1.88 on revenue of $20.75B, compared with a forecasts for EPS of $1.87 on revenue of $20.8B.

Abbott Labs earnings matched analysts’ expectations on January 22, with fourth quarter EPS of $0.95 on revenue of $8.31B. Investing.com analysts anticipated EPS of $0.95 on revenue of $8,263M

Stay up-to-date on all of the upcoming earnings reports by visiting Investing.com’s earnings calendar

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