The pharmaceutical company has managed to outperform the expectations of the analysts at Wall Street.
On Tuesday, the pharmaceutical company Pfizer reported its fourth quarter earnings for fiscal year 2015. It managed to outperform the estimations of the analyst at Wall Street as it reported strong sales for a number of drugs made by the company. However for the 2016 guidance the forecast was not as impressive.
The pharmaceutical firm provided lower than expected guidance for the current year because of the changes that are to take place in foreign exchange rates in comparison to the U.S. dollars. On Tuesday, the stock of the healthcare company closed down at $30.14.
For the last quarter of 2015, Pfizer Inc. reported a net income of $613 million – earnings per share were at 10 cents. The revenue for the pharma firm rose by as much as 7 percent during the quarter. It has been posting a decline in sales for quite some time now but it has finally managed to overcome the generic competition that had been going on.
The increase in revenue is also an indicator of the fact that the sales of its newest product along with a number of other injectable medicines such as Hospira grew. In comparison to a year earlier, the Viagra drug maker reported net income of $1.23 billion which amounted to 19 cents on each share. Additionally, the New York Drug manufacturer stated that there could be decline in revenue by as much as $2.3 billion mainly due to the currency fluctuations and also a decline of as much as $800 million because of its business in Venezuela.
Furthermore, for the current fiscal year (2016) the company is expecting to generate revenue of somewhere between $49 to $51 billion which would indicate a slight increase from its revenue for 2015 which was $48.9 billion. Keeping the foreign exchange rates of the country in mind, it stated that revenue generation could be of $51.3 billion to $53.3 billion. For the year, it is expecting the adjusted earnings per share to be at $2.20 to $2.30 which would indicate a shave of 16 cents due to the currency fluctuation. For fiscal year 2015, the health care firm reported EPS of $2.20.
The New York Based drug maker has faced numerous currency woe related issues in Venezuela and during the fourth quarter it incurred a net loss of $806 million on its assets that are in the country along with inventory impairment. Pfizer has expected the money to be exchanged at a rate of 200 bolivars instead of the rate that is being used by the businesses that is 6.30. Presently, the spokesperson has declined to comment on the matter.
Additionally, the chief executive officer, Ian Read stated that the key product sales will remain strong in the present year and also stated that the company will complete its $160 billion merger deal with Allergan, an Ireland based pharmaceutical company, by the second half of the current fiscal year. This deal has been criticized by many as they believe that the company is going forward with it because of the tax benefits.