Pfizer 2nd-Qtr Net Seen at 17 Cents a Share: Earnings Outlook
Bloomberg News
July 16, 1999, 4:20 p.m. ET
New York, July 16 (Bloomberg) -- Pfizer Inc., the maker of
the anti-impotence pill, Viagra, will report earnings sometime
next week. Here's a preview:
Expected Earnings
Pfizer Inc.'s second-quarter earnings are expected to rise
to 17 cents a share, the average estimate of analysts polled by
First Call Corp. EarningsWhispers.com, an Internet site, also has
an estimate of 17 cents a share. Pfizer, the No. 2 U.S. drugmaker
after Merck & Co., earned 16 cents, adjusted for a three-for-one
stock split, in the year-ago quarter, according to First Call.
Behind the Numbers
Pfizer warned in April that its second-quarter profit would
rise 9 percent or less, surprising analysts who had expected a 20
percent increase, as the company faced the comparison with the
record-setting introduction of Viagra in the second quarter of
1998. Introduced in April 1998, the drug had second-quarter sales
of $411 million as news stories spurred demand. In the second
quarter of 1999, Viagra sales could be about $250 million, said
Neil Sweig, an analyst with Southeast Research Partners.
In the quarter, Pfizer had a setback with its new
antibiotic, Trovan. The U.S. Food and Drug Administration last
month said Trovan should only be used to treat patients with
serious or life-threatening illnesses because of concerns about
liver damage.
The sales of some of its biggest products, such as the high-
blood-pressure medicine Norvasc, have been rising. Under Chief
Executive William Steere, Pfizer has been channeling its profits
from Norvasc and other blockbusters such as the antidepressant
Zoloft back into building its drug research. It will spend $2.8
billion in 1999 on the hunt for new medicines.
What the Experts Say
''The company is doing very well, but it's not going to be a
great quarter because of the Viagra comparisons,'' said Hemant
Shah, an independent analyst with a ''neutral'' rating on the
stock.
Previous Market Reaction
Pfizer fell 4 7/8 to 43 21/64, adjusted for its three-for-
one stock split, on April 15 after reporting that first-quarter
profit rose 18 percent to $815 million, or 62 cents a share.
Market Trend
Pfizer shares have declined 9.3 percent this year to 37
13/16 amid concerns that proposed reforms of Medicare, the U.S.
government health-insurance program for the elderly, will cut
drugmakers' profits. The stock also has fallen on concerns about
Trovan, which some analysts once saw as a potential blockbuster.
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