Pfizer Cuts 2012 Guidance, Shares Down

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Despite besting fourth-quarter financial expectations, pharmaceutical giant Pfizer’s (PFE) share price took a hit this morning after the world’s largest drug maker dimmed its 2012 outlook due to currency issues.

At $21.52 a share, Pfizer’s stock price fell 0.26% or six*cents a share in morning market action.*

Operating profits reached 50 cents a share, besting the Capital IQ Consensus Estimate of 47 cents a share. Revenue fell 3.5% to $16.7 billion compared to the fourth quarter of 2011.

Still, Pfizer significantly trimmed its full-year EPS and revenue forecasts, blaming recent changes in foreign exchange rates, as the strengthening of the dollar against other currencies reduces the value of foreign sales, a factor other drug makers have been citing this month.

Pfizer now expects to earn between $2.20 a share and $2.30 a share on revenue of $60.5 billion to $62.5 billion. Previously, the company expected earnings to reach between $2.25 a share and $2.35 a share on revenue of $62.2 billion and $64.7 billion.

Pfizer’s biggest selling drug Lipitor lost its U.S. patent in November. Since then, the company has labored to hold onto Lipitor sales. Cuts in the sales force and other costs and strong sales outside its pharmaceutical business helped Pfizer’s results.



Original Article Source by Barrons.com