NYSE$PFE

Pfizer · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported third-quarter results, driven by biopharma operational growth and key brands performance.

Pfizer reported a decrease in third-quarter revenues by 4% to $12.1 billion. Despite the decline, Biopharma revenues increased by 4% operationally, driven by Vyndaqel/Vyndamax, biosimilars, and key brands like Eliquis and Ibrance. The company updated and tightened its 2020 financial guidance, including a slight increase to the midpoint of Adjusted Diluted EPS.

  • Third-Quarter 2020 Revenues of $12.1 Billion; Reported Diluted EPS of $0.39, Adjusted Diluted EPS of $0.72
  • 4% Operational Growth from Biopharma, Primarily Driven by the Ongoing Strong Performance of Vyndaqel/Vyndamax, Growth from our Leading Portfolio of Biosimilars, as Well as Continued Strength from Key Brands Including Eliquis, Ibrance, Xeljanz, Inlyta and Xtandi
  • Updated and Tightened Ranges for Certain Components of Total Company 2020 Financial Guidance, Including a Slight Increase to the Midpoint of Adjusted Diluted EPS Guidance Range
  • Continue to Expect to Close the Upjohn Transaction with Mylan N.V. (Mylan) in the Fourth Quarter of 2020

Headline financials

Total Revenue

$12.1B

Previous: $12.7B-4.3%
EPS (adj)

$0.72

Previous: $0.75-4.0%
Capital Expenditures

-$1.47B

Previous: -$1.5B+2.5%
Free Cash Flow

$727M

Previous: $6.18B-88.2%
Net Income

$2.19B

Previous: $7.68B-71.4%
Operating Income

-$8.72B

Previous: -$8.31B-4.9%
Gross Profit

$9.6B

Previous: $10.1B-4.7%
Cash & Equivalents

$1.59B

Previous: $2.79B-43.0%
Total Assets

$179B

Previous: $170B+5.0%
Stock-Based Comp

$234M

Previous: $64M+265.6%

Revenue & EPS history

Pfizer · Revenue · Quarterly

$12.1B

Q3 2020-4.3%vs Q3 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Pfizer · $10.2B total across 1 segment · Q3 2020

  • Biopharma
    $10.2B+2.6%

Forward guidance

Pfizer updated and tightened the ranges for certain components of Total Company 2020 financial guidance, including a slight increase to the midpoint of the Adjusted Diluted EPS guidance range, and reaffirmed all 2020 financial guidance components for New Pfizer and Upjohn.

Tailwinds

  • Revenues: $48.8 to $49.5 billion (previously $48.6 to $50.6 billion)
  • Adjusted Cost of Sales as a Percentage of Revenues: 20.2% to 20.7% (previously 19.5% to 20.5%)
  • Adjusted SI&A Expenses: $11.5 to $12.0 billion (previously $11.5 to $12.5 billion)
  • Adjusted R&D Expenses: $8.8 to $9.1 billion (previously $8.6 to $9.0 billion)
  • Adjusted Other (Income)/Deductions: Approximately $1.0 billion of income (previously approximately $800 million of income)

Headwinds

  • Financial guidance reflects management’s current expectations for operational performance, foreign exchange rates as well as various COVID-19-related uncertainties, primarily those related to the severity, duration and global macroeconomic impact of the pandemic.
  • Key guidance assumptions regarding these uncertainties broadly reflect an ongoing, gradual global recovery from the macroeconomic and healthcare impacts of the COVID-19 pandemic.
  • Current guidance continues to assume no revenue contributions from a potential COVID-19 vaccine.
  • Financial guidance reflects the anticipated unfavorable impact of approximately $0.5 billion on revenues and approximately $0.04 on Adjusted diluted EPS as a result of changes in foreign exchange rates relative to the U.S. dollar compared to foreign exchange rates from 2019.
  • Guidance for Adjusted diluted EPS assumes diluted weighted-average shares outstanding of approximately 5.6 billion shares, which assumes 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 Q3 2020

Historical avgQ3 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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