Pfizer's quarterly profits jump past forecasts

US drug giant Pfizer easily beat the Street's expectations for quarterly earnings despite a shrinking topline and lifted its full-year guidance.

For the three months ending on 30 September, the company posted a roughly 5.0% fall in revenues to reach $12.68bn (consensus: $12.26bn), for a 2.0% dip in adjusted and diluted earnings per share of 75 cents (consensus: 68 cents).

Reported net income surged 87.0% to $7.68bn following the de-consolidation of its consumer healthcare unit on the back of its joint venture with GlaxoSmithKline, which resulted in a $8.1bn gain before taxes.

Commenting on its financial outlook, Pfizer chief executive officer, Albert Bourla, highlighted the 9% jump in volume-driven operational revenues at its Biopharma unit, including from key brands such as Ibrance, Xeljanz, Eliquis, Vyndaqel and Inlyta together with that from emerging markets.

By segments, total quarterly sales in Biopharma jumped by 7.0% to $10.12bn, while those from Upjohn fell 26.0% to $2.19bn and those from consumer healthcare by 54% to $377m, with the latter impacted by the completion of the JV with GSK.

Revenues from Upjohn took a hit from "significant" volume declines in US sales of its blockbuster brand Lyrica for the treatment of ailments ranging from epilepsy to anxiety, on the back of multi-source competition from generics.

The company also said that on an operational basis its quarterly sales were flat versus the comparable year ago period.

In terms of Pfizer's outlook, management lifted the midpoint of its guidance for full-year 2019 revenues by $200.0m to $51.2-52.2bn, despite an anticipated $200.0m headwind from foreign exchange movements.

So too, Pfizer said it was expecting full-year EPS to come in 16 cents ahead of its prior forecast range at between $2.94-3.0.

As of 1357 GMT, shares of Pfizer were trading lower by 3.35% to $38.53.