Pfizer’s Q4 Earnings Preview: Watching Ibrance And Prevnar Sales

January 26th, 2018 by Trefis Team

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Pfizer (NYSE:PFE) will report its Q4 earnings on January 30. We expect the company to see a continued ramp up in its oncology drug sales, primarily Ibrance, which may inch closer to $1 billion in quarterly sales. We’ll be closely watching Prevnar’s performance, which beat street estimates with $1.5 billion sales in the previous quarter. Of late, Prevnar’s sales have slowed somewhat due to a decline in vaccination rates. This trend is likely to continue in the near term. Among other drugs, Eliquis and Lyrica are likely to post strong growth. Both the drugs posted double-digit growth in the previous quarter. It should be noted that Lyrica will lose its U.S. patent protection this year, and the future sales will likely be impacted by competition. Overall, we estimate the company’s full year revenues to be around $53 billion and EPS of $2.57. The company’s full year earnings guidance is in the range of $2.54 – $2.62 per share.

Most of the major pharmaceutical companies, including Pfizer, should benefit from lower tax rates. The companies will see a significant impact from changes in their effective tax rates, and this could allow these companies to potentially increase R&D investments with the freed up cash, and more projects may become economically viable – as the expectation of greater future profits due to a lower tax rate could potentially encourage more risk taking. It will be interesting to see the company’s commentary on freed up cash.

We have created an interactive dashboard that details the company’s expected full year 2017 performance. You can modify segment revenues and net income margin to see how it impacts the overall earnings.

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