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Biotech / Medical : PFE (Pfizer) How high will it go? -- Ignore unavailable to you. Want to Upgrade?

To: LR who wrote (5684)	9/23/1998 11:33:00 PM
From: Uncle Frank	Read Replies (1) \| Respond to of 9523

>>Do you think PFE makes $0.57 this quarter? Viagra sales down since last qtr. How do they do better than the $0.47 last qtr? Maybe this has something to do with it: >>NEW YORK, Sept 10 (Reuters) -Research-based health care company Pfizer Inc. said Thursday it completed the sale of its American Medical Systems business to private equity investment firm E.M. Warburg, Pincus & Co. LLC for $130 million. Pfizer has 1400M shares outstanding, so the $130M realized in the sale will yield $.093/share. On the other hand, I think the estimate is probably for profits from operations, so let's look at their 3rd quarter versus 2nd quarter in 1997; profits went from $457M to $596M, which is 30%, without Viagra. Besides, I am not sure Viagra sales are down for the quarter. New prescription rates can be deceiving. Yeah, I think they'll post $.57/sh. or better.

To: LR who wrote (5684)	9/24/1998 12:11:00 PM
From: Hong-Lee Yu	Respond to 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