NYSE$PFE

Pfizer · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Pfizer's Q1 2020 financial results were reported, reflecting the impact of COVID-19 and strategic business realignments.

Pfizer reported Q1 2020 revenues of $12.0 billion, an 8% decrease compared to Q1 2019. Biopharma grew 12% operationally, while Upjohn declined 37%. Reported EPS was $0.61, and adjusted EPS was $0.80. The company reaffirmed its 2020 financial guidance.

  • Total revenues decreased by 8% to $12.0 billion, impacted by the loss of exclusivity for Lyrica and declines in China.
  • Biopharma revenues increased by 12% operationally, driven by key brands like Eliquis, Vyndaqel/Vyndamax, Ibrance and Inlyta.
  • Upjohn revenues declined by 37% operationally, due to generic competition for Lyrica in the U.S. and the VBP program in China.
  • The company is actively involved in researching potential therapeutics and vaccines for COVID-19, with investments increasing R&D expenses.

Headline financials

Total Revenue

$12B

Previous: $13.1B-8.3%
EPS (adj)

$0.80

Previous: $0.85-5.9%
Cost of sales

$2.38B

No prior period
R&D expenses

$1.72B

No prior period
Capital Expenditures

-$463M

Previous: -$460M-0.7%
Free Cash Flow

$2.94B

Previous: $3.42B-14.2%
Net Income

$3.4B

Previous: $3.88B-12.4%
Operating Income

-$7.01B

Previous: -$7.65B+8.4%
Gross Profit

$9.65B

Previous: $10.7B-9.7%
Cash & Equivalents

$2.15B

Previous: $1.94B+11.0%
Total Assets

$166B

Previous: $155B+7.0%
Stock-Based Comp

$57M

Previous: $185M-69.2%

Revenue & EPS history

Pfizer · Revenue · Quarterly

$12B

Q1 2020-8.3%vs Q1 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Pfizer · $10B total across 1 segment · Q1 2020

  • Biopharma
    $10B

Forward guidance

Pfizer reaffirmed its 2020 financial guidance for revenues and Adjusted diluted EPS, while updating certain other guidance components primarily to reflect actual and anticipated impacts from the COVID-19 pandemic.

Tailwinds

  • Patient visits with physicians, vaccinations and elective surgical procedures will rebound starting in second-half 2020 and align more closely with historical levels.
  • New-to-brand prescription trends for certain key products and vaccination rates will resume on a similar trajectory to what was seen in 2019, beginning in second-half 2020.
  • Access to prescribers for sales force colleagues is restored in second-half 2020.
  • Clinical trial enrollment, including new study starts, will fully resume in second-half 2020.
  • Pfizer's manufacturing and supply chain activities are not materially disrupted.

Headwinds

  • Guidance range for revenues was reaffirmed at $48.5 to $50.5 billion, absorbing a $0.6 billion unfavorable impact from changes in foreign exchange rates in relation to the U.S. dollar since mid-January 2020.
  • Guidance for Adjusted diluted EPS absorbs a $0.04 unfavorable impact from changes in foreign exchange rates since mid-January 2020.
  • The decrease in guidance for Adjusted SI&A expenses reflects incremental cost-savings opportunities, as well as actual and anticipated COVID-19-related spending reductions.
  • An increase in guidance for Adjusted R&D expenses, which now includes anticipated incremental investments to develop potential therapies and a potential vaccine to combat COVID-19.
  • Financial guidance for Adjusted diluted EPS continues to assume no share repurchases in 2020.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.3%

Avg return

Earnings day

-0.3%

Avg return

5 days after

+0.1%

Avg return

30 days after

50%

36 / 72 earnings

Positive

+8.1%

Q1 2024

Best reaction

-10.0%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.2%-2.5%-2.3%
Q4 2025-3.3%+2.1%-0.2%
Q3 2025-1.5%-0.9%+4.2%
Q1 2025+3.2%+5.0%+1.7%
Q4 2024-1.3%-1.8%+0.2%
Q3 2024-1.2%-2.7%-10.5%
Q2 2024-0.6%-0.9%-6.5%
Q1 2024+8.1%+9.9%+11.9%
Q4 2023-1.5%-2.0%-3.3%
Q3 2023-0.1%+2.3%-0.3%
Q2 2023-2.0%-2.9%-1.9%
Q1 2023-1.9%-1.8%-3.0%
Q4 2022+1.0%+1.2%-6.7%
Q3 2022+1.1%+1.4%+9.7%
Q2 2022-2.8%-4.4%-9.9%
Q1 2022+2.7%+1.4%+9.0%
Q4 2021-3.3%-4.6%-7.5%
Q3 2021+2.7%+11.4%+21.5%
Q2 2021+1.6%+4.4%+10.7%
Q1 2021+0.4%-0.6%-2.2%
Q4 2020-2.7%-2.5%-4.5%
Q3 2020-6.5%-6.4%+1.5%
Q2 2020+4.6%+2.5%+0.9%
Q1 2020-0.5%-1.8%-0.4%
Q4 2019-6.4%-7.3%-15.1%
Q3 2019+3.2%+3.0%+3.6%
Q2 2019-10.0%-11.8%-18.6%
Q1 2019+3.0%+4.5%+5.8%
Q4 2018+5.2%+8.5%+9.7%
Q3 2018-0.4%-0.7%+5.3%
Q2 2018+4.3%+5.1%+7.5%
Q1 2018-4.7%-4.8%-1.9%
Q4 2017-5.1%-6.2%-8.7%
Q3 2017+0.3%+1.1%+3.2%
Q2 2017-0.7%+1.4%+2.3%
Q1 2017-0.9%-0.9%-3.2%
Q4 2016+1.1%+2.5%+10.2%
Q3 2016-3.4%-5.4%-0.8%
Q2 2016-5.4%-5.0%-7.0%
Q1 2016+1.8%
Q4 2015-1.6%
Q3 2015+3.8%
Q2 2015+4.1%
Q1 2015-0.9%
Q4 2014-2.6%
Q3 2014+1.6%
Q2 2014-2.8%
Q1 2014-4.3%
Q4 2013+1.5%
Q3 2013+0.6%
Q2 2013-1.0%
Q1 2013-5.0%
Q4 2012+2.5%
Q3 2012-1.3%
Q2 2012+0.9%
Q1 2012+0.9%
Q4 2011-0.6%
Q3 2011+3.4%
Q2 2011+4.8%
Q1 2011+0.8%
Q4 2010+1.5%
Q3 2010-1.4%
Q2 2010+0.5%
Q1 2009-4.1%
Q1 2010-1.1%
Q4 2007+0.4%
Q4 2009+0.4%
Q3 2008+0.2%
Q3 2009+0.2%
Q4 2008+0.6%
Q2 2008+0.6%
Q2 2009+0.6%

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