Pfizer Delivers Strong Q1 Numbers Helped By Hospira Acquisition, Boosts Guidance

Pfizer Inc. PFE reported net income of $3.02 billion, up 27 percent from $2.38 billion in the prior year quarter. Similarly, its earnings grew 29 percent to $0.49 a share from $0.38 a share in the corresponding period of the last year. On an adjusted basis, it would have earned 30 percent more in income to $4.16 billion or $0.67 a share from $3.2 billion or $0.51 a share in the previous year quarter.

The company stated its reported revenues advanced 20 percent to $13.01 billion from $10.86 billion in the same quarter last year. Street analysts expected the company to earn $0.51 a share on revenue of $12.02 billion for the first quarter.

Pfizer's Chairman and CEO, Ian Read, reacted to the results and stated, "We began the year with very strong operational performance across both our Innovative and Established businesses and this has served as a key driver of an increase in both our revenue and earnings per share guidance for the remainder of the year. I believe this performance results from our Company being well positioned in terms of product portfolio, organizational structure and leadership, as well as by our continued strong financial flexibility. In addition, our late stage product pipeline is increasingly ready to deliver our next set of prospective growth drivers with competitive positions in high-potential therapeutic areas where I believe Pfizer can be a leader."

Read added, "In addition, we have made excellent progress integrating the legacy Hospira operations and now expect to achieve $1.0 billion of Hospira cost savings by 2018, 25% more than our initial cost savings target of $800 million. Overall, we remain focused on delivering continued revenue growth both through internal and external opportunities, managing an efficient operating structure and making shareholder-friendly capital allocation and business portfolio decisions."

CFO Frank D'Amelio said, "We grew revenues by 15% operationally, excluding the impact of foreign exchange and legacy Hospira operations. We also continued to deliver significant value directly to shareholders by paying $1.9 billion in first-quarter 2016 dividends and executing a $5 billion accelerated share repurchase agreement in March 2016."

He concluded, "We raised our 2016 financial guidance for reported revenues(1) and adjusted diluted EPS(2) to reflect the strong operational performance to date coupled with an improved business outlook for 2016. Changes in foreign exchange rates since mid-January 2016 also favorably impacted our updated guidance. For the remainder of 2016, we expect to continue to advance the Hospira integration while remaining focused on delivering strong operating results."

Moving ahead, Pfizer boosted its adjusted earnings forecast to $2.38-$2.48 a share from $2.20-$2.30 a share for the full year 2016. Similarly, the company lifted its revenue forecast to $51-$53.0 billion from $49-$51 billion. Street analysts estimated the company to earn $2.30 a share on revenue of $51.24 billion.

In the pre-market trading, the stock traded 3 percent higher.