Pfizer Inc. Spikes On $13 Billion Plan For Buybacks, Dividends

Pfizer Inc.

spiked Tuesday after investors were told the company will return $13 billion to shareholders during 2015 in the form of dividends and buybacks. The New York-based drug maker had been up as much as 3 percent but traded recently at $32.72, down $0.08 cents. In its earnings release earlier Tuesday, the company said it planned $6 billion in share repurchases for 2015, including $715 million repurchased in the year to date. Analysts were told in a subsequent conference call that 2015 dividends will amount to a further $7 billion. Chief Financial Officer Frank D'Amelio noted that during 2014, the company returned nearly $12 billion to shareholders through share repurchases and dividends. The buybacks slated for 2015 are part of an $11 billion plan announced in October, which didn't include a time frame. Pfizer has about $33 billion in cash and has been reportedly in search of an acquisition target since a $120 billion deal to buy AstraZeneca plc

foundered on a change in tax rules regarding so-called inversions. Pfizer's fourth-quarter earnings fell sharply as competition from generic drugs resulted in lower revenue for some of its powerhouse products. The company posted adjusted earnings of $0.54 cents a share, in line with expectations. But Pfizer's 2015 forecast for earnings between $2. and $2.10 a share fell short of Wall Street's projection of $2.21 a share.