Pfizer on Tuesday beat the Street’s fourth-quarter earnings expectations in addition to also laid out its plans for the brand-new tax law.
The pharmaceutical giant reported adjusted earnings per share of 62 cents. The Street had expected earnings per share of 56 cents. Revenue on $13.7 billion was in line with expectations.
Pfizer’s innovative health unit grew 5 percent on an operational basis by a year earlier, reaching $8.2 billion in revenue driven by Eliquis, Xeljanz in addition to also Prevenar. Its essential health business decreased 8 percent operationally year over year, falling to $5.4 billion.
- EPS: 62 cents vs. the Thomson Reuters estimate of 56 cents.
- Revenue: $13.7 billion vs. $13.7 billion expected by Thomson Reuters’ survey of analysts.
from the fourth quarter, the company reported a net profit of $12.3 billion, or $2.02 per share. However, after stripping out special items, the company earned $3.8 billion, or 62 cents per share, from the latest period, outpacing analyst estimates of 56 cents per share.
For the full year, Pfizer forecasts revenue ranging $53.5 billion to $55.5 billion in addition to also adjusted earnings per share ranging $2.0 to $3, above the Street’s estimates of $53.9 billion in addition to also $2.78 per share, respectively. The guidance includes $5 billion in buybacks.
Pfizer said its effective tax rate on adjusted income will be about 17 percent next year, down by 20 percent This specific year. the item anticipates a $15 billion tax bill over eight years to repatriate its overseas cash.
In wake of the brand-new tax law, the company plans to invest approximately $5 billion in capital projects from the U.S., including building its manufacturing presence. the item plans to contribute $500 million to its U.S. pension plan in addition to also has allocated about $100 million for a special, one-time bonus for all nonexecutive employees from the first quarter of 2018.
Pfizer also contributed $0 million to the Pfizer Foundation.
Bids are due Thursday for its consumer health unit. The company expects the business, which includes brands like Advil in addition to also ChapStick, to generate about $20 billion. Johnson & Johnson dropped out of the competition, leaving GlaxoSmithKline in addition to also Reckitt Benckiser among those preparing bids.
“We remain on track to make This specific decision, which could include everything by a full or partial separation to ultimately deciding to retain the business, during 2018,” CEO Ian Read said in a statement.