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Pfizer Q4 net income up to $12.27 billion

Staff Writer |
Pfizer reported a surge in profit for the fourth quarter from last year primarily reflecting a lower effective tax rate due to the recent U.S. tax reform and fewer impairment charges compared to last year.

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Pfizer's fourth-quarter net income rose to $12.27 billion or $2.02 per share from $775 million or $0.13 per share in the year-ago period.

The company said its provision for taxes on reported income in the latest quarter and fiscal 2017 was favorably impacted by about $10.7 billion, primarily reflecting the remeasurement of U.S. deferred tax liabilities. This includes the repatriation tax on deemed repatriated accumulated earnings of foreign subsidiaries.

Adjusted earnings for the quarter were $0.62 per share, compared to $0.47 per share last year. On average, analysts polled by Thomson Reuters expected earnings of $0.56 per share. Analysts' estimates typically exclude special items.

Revenue for the quarter rose 1 percent to $13.70 billion from $13.63 billion in the same period last year. Analysts had a consensus revenue estimate of $13.68 billion.

The increase in revenues reflects the favorable impact of foreign exchange of $114 million, offset by an operational decline of $39 million. Excluding the revenues for HIS in the prior-year quarter and the favorable impact of foreign exchange, revenues increased 2 percent operationally.

Innovative Health revenues increased 5 percent operationally to $8.22 billion, driven by continued growth from key brands including Eliquis, Xeljanz, Prevenar 13 as well as Lyrica, Ibrance and Chantix/Champix.

Essential Health revenues declined 8 percent operationally to $5.48 billion, of which 5 percent operationally was due to the February 2017 divestiture of HIS.

Looking ahead to fiscal 2018, Pfizer forecast adjusted earnings of $2.90 to $3.00 per share and revenues of $53.5 billion to $55.5 billion. The Street expects earnings of $2.78 per share for the year on revenues of $53.88 billion.

The company noted that its full-year earnings outlook anticipates share repurchases totaling $5.0 billion in 2018.

Further, Pfizer said it plans to make a $500 million contribution to its U.S. pension plan in 2018 and has also allocated about $100 million for a special, one-time bonus to be paid to all non-executive Pfizer colleagues in first-quarter 2018.

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