Pfizer just reported second quarter net income that slid to $1.27 billion, or 18 cents per share, from $2.42 billion, or 33 cents per share, a year ago. Excluding items, adjusted profit fell 20 percent to $2.94 billion, or 42 cents per share, from $3.66 billion, or 50 cents per share, a year ago. Revenue that dipped 6 percent to $11.08 billion from $11.74 billion in the prior-year period. Pfizer said Lipitor sales declined 13 percent in the second quarter, as 5 percent growth in international markets was more than offset by a 25 percent decline in the U.S.
This is not only a dramatic fall, but a real miss from analyst expectations. Analysts had expected adjusted profit of 50 cents per share on revenue of $11.4 billion.
''While there's no question that we faced difficult challenges in the second quarter of 2007 -- including the impact of the loss of U.S. exclusivity for Zoloft and Norvasc, the timing of some expenses and Lipitor's performance in the U.S. -- we're still on track to meet our previously announced 2007 and 2008 revenue and adjusted diluted earnings per share goals,'' said Jeffrey Kindler, Pfizer chairman and chief executive officer, in a statement. Based on this, Pfizer reaffirmed its fiscal 2007 outlook for adjusted profit of $2.08 to $2.15 per share on revenue of $47 billion to $48 billion, as well as adjusted earnings guidance for 2008 of $2.31 to $2.45 per share on sales of $46.5 billion to $48.5 billion.
With Lipitor and its competitors coming off of patent and the loss of Zoloft and Norvasc and nothing in the pipeline, I am not sure how they can reaffirm these numbers, but I want some of whatever they are smoking.
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