Trefis Market Diagnosis: What Are Market Participants Thinking About Pfizer?

by Trefis Team
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Pfizer (NYSE:PFE) had a reasonably good 2016 and saw a rebound in its revenue. While some drugs are doing well, the portfolio in general has matured. So what comes next? For investors, understanding market expectations is one of the most critical tasks, and many investors rely on the expectations of individual analysts. However, the information concerning the expectations of actual market participants and stakeholders, such as institutional investors, is often not available or disseminated. With its proprietary technology and your participation, Trefis intends to plug this information gap. We have created an interactive model that mimics Pfizer’s income statement and estimates EPS for 2017 and 2018.

Do you want to know the market outlook for Pfizer’s revenue, expenses, and EPS for the next 2 years? Click here to see the interactive charts and create your own forecasts to better understand how individual income statement items impact Pfizer’s EPS. Additionally, send an email to content@trefis.com with subject “Trefis Market Diagnosis: Pfizer” to get access to the market perspective.

Forecasts That Matter

Revenue: After 5 years of declines, Pfizer’s revenue rebounded in 2016 and stood at $52.8 billion. We expect low single digit growth for the next 2 years. You can adjust the forecast to see EPS estimates for 2017 and 2018 based on the changes that you make.

Cost of sales: From 2012 to 2015, Pfizer’s cost of sales stayed stable as a percentage of revenue, around 19-20%. However, the figure rose sharply to 23% in 2016, the highest we have seen in the last six years. You can make adjustments to the forecast here.

Selling, informational and administrative expenses: As a percentage of revenue, these expenses have remained in the range of 28-30% for the last 6-7 years. Needless to say, Pfizer spends a lot on marketing. If you think anything will change, you can change the forecast for these expenses and see how the EPS forecast changes.

Research and development expenses: As a percentage of revenue, these expenses have fluctuated between 13% and 17% in the last few years. R&D expenses totaled $7.87 billion in 2016. Click here to see the forecast for R&D expenses and adjust it.

The image below is a snapshot of our interactive income statement forecast model for Pfizer.

PFE_IS_GridView

 Please let us know your views in the comment box below.

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