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Biotech / Medical : PFE (Pfizer) How high will it go?
PFE 25.85+0.2%Dec 12 9:30 AM EST

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To: LR who wrote (5684)9/24/1998 12:11:00 PM
From: Hong-Lee Yu   of 9523
 
PFE will meet or exceed 0.57C in Q3.

Take a closer look at Q2 and Q3 earning reports in 1997. SG&A are 42.8% and 38.3% respectively and operating margin (after tax) is 15.7% and 19.3% respectively. My guess is that Q2 traditionally have a large SG & A expenses write-off.

Revenues for Norvasc, Zoloft, alliance revenue and Trovan will be much higher compared to Q2. This will more than compensating 150M or so reduction in Viagra revenues and divesture of MTG, gross margin will be higher and so is operating margin.

Here is my guess, 3.8B revenues and 21% operating margin. 0.60C EPS

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