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S&P 500 (NYSE:SPY) component Pfizer (NYSE:PFE) will unveil its latest earnings on Thursday, November 1, 2012. Pfizer is a global pharmaceutical company which develops and manufactures prescription medications for humans and animals.
Pfizer Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for profit of 52 cents per share, a decline of 16.1% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 56 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 53 cents during the last month. Analysts are projecting profit to rise by 4.8% compared to last year’s $2.20.
Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 7 cents, reporting net income of 62 cents per share against a mean estimate of profit of 55 cents per share.
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A Look Back: In the second quarter, profit rose 24.6% to $3.25 billion (43 cents a share) from $2.61 billion (33 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 11.3% to $15.06 billion from $16.98 billion.
Wall St. Revenue Expectations: Analysts are projecting a decline of 14.8% in revenue from the year-earlier quarter to $14.64 billion.
Stock Price Performance: Between August 28, 2012 and October 24, 2012, the stock price had risen $1.46 (6.1%), from $23.85 to $25.31. The stock price saw one of its best stretches over the last year between July 11, 2012 and July 19, 2012, when shares rose for seven straight days, increasing 6.5% (+$1.46) over that span. It saw one of its worst periods between March 30, 2012 and April 13, 2012 when shares fell for 10 straight days, dropping 3.5% (-79 cents) over that span.
On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 4.6% in the fourth quarter of the last fiscal year and 6.6% in first quarter before falling again in the second quarter.
Heading into this earnings announcement, the company is trying build on some positive momentum from last quarter’s income increase. After net income declines in the fourth quarter of the last fiscal year and first quarter, profit rose in the second quarter.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.91 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 2.02 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 13.7% to $30.8 billion while assets rose 7.1% to $58.77 billion.
Analyst Ratings: With 15 analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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