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Pfizer posted better-than-expected Q3 results on strong emerging markets sales and strength in its nutritional products and animal health business. Earnings came in at $0.62 per share on revenue of $17.19 billion while analysts were looking for $0.56 on $16.42 billion.
Credit Suisse notes that the beat was not only driven by a robust top line, but also lower costs which helped to offset higher non-operating items and taxes. If taxes were in line with expectations, the brokerage believes the company could have added another penny to earnings.
For the full year, management increased its profit forecast to a range of $2.24-2.29 per share, up from a range of $2.16-2.26. In 2012 the company expects earnings of $2.25-2.35 per share. Additionally, the company raised its 2011 share repurchase guidance to a range of $7-9 billion, up from $5-7 billion. Credit Suisse remains bullish on Pfizer due to potential EPS upside from the pipeline (such as Prevnar 13 in the adult indication and oral JAK tofacitinib) and restructuring.
Pfizer (PFE : NYSE : US$19.33), Net Change: 0.07, % Change: 0.36%, Volume: 74,068,815
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