Earnings Preview: Pfizer - Analyst Blog
28 January 2013 - 11:30PM
Zacks
Pfizer (PFE) is scheduled to report its fourth
quarter 2012 results on Jan 29, 2013 before the opening bell.
Last quarter, the company posted a 1.92% positive surprise.
Let’s see how things are shaping up prior to the announcement.
Growth Factors this Past Quarter
Last quarter, Pfizer posted earnings, of 53 cents per share, a
penny above the Zacks Consensus Estimate. However, earnings fell
12% year over year. Results were hit by the loss of exclusivity of
certain products and the unfavorable impact of currency
fluctuation. We believe that the near-term earnings will be driven
by cost cutting efforts and share repurchases. However, longer-term
growth will depend on the success of drug development. The
company’s pipeline needs to deliver given the Lipitor loss of
exclusivity and the upcoming loss of exclusivity on additional
products in the next few years.
Earnings Whispers?
Our proven model does not conclusively show that Pfizer is
likely to beat earnings this quarter. This is because a stock needs
to have both a positive Earnings ESP (Read: Zacks Earnings ESP: A
Better Method)and a Zacks Rank #1 (Strong Buy) or at least Zacks
Rank #2 (Buy) or Zacks Rank #3 (Hold) for this to happen.This is
not the case here as you will see below.
Zacks ESP: This is because the Most Accurate
estimate stands at 44 cents, which is in line with the Zacks
Consensus Estimate. This implies an earnings ESP of 0.00%.
Zacks Rank #3 (Hold): Pfizer carries a Zacks
Rank of 3. The combination of Pfizer’s Zacks Rank # 3 and 0.00% ESP
makes surprise prediction difficult.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post an
earnings beat this quarter:
Sanofi (SNY), Earnings ESP of +9.21% and Zacks
Rank #2 (Buy)
Onyx Pharma Inc. (ONXX), Earnings ESP of
+21.43% and Zacks Rank #3 (Hold)
Astrazeneca (AZN), Earnings ESP of +0.73% and
Zacks Rank #3 (Hold)
ASTRAZENECA PLC (AZN): Free Stock Analysis Report
ONYX PHARMA INC (ONXX): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
SANOFI-AVENTIS (SNY): Free Stock Analysis Report
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