Pfizer Inc. (PFE) Shares Fall After Earnings Beat – Investors Not So Pleased With Guidance


Shares of Pfizer Inc. (NYSE:PFE) are trading down 1.66% this morning in the pre-market after the company released their fourth quarter 2015 earnings. Earnings ended up coming in above what analysts had been expecting, but it is the 2016 guidance which has caused investors to become a bit bearish.

For the fourth quarter, Pfizer Inc. (NYSE:PFE) reported revenue of $14.05 billion, compared to the $13.61 billion that Zacks Investment Reesearch had predicted. Revenue also beat that of last year, by close to $1 billion ($13.12 billion for 2014). Net income came in at $613 million, which is approximately $0.10 per share. This fell well short of last years $1.23 billion ($0.19 per share).

2016 guidance is what left investors a bit disappointed. Pfizer is expecting revenue of between $49 billion and $51 billion, falling short of analysts’ expectations of $52.49 billion. The stock decreased 1.12% or $0.34 during the last trading session, hitting $30.15. Approximately 73,041 shares traded hands. PFE shares have declined 11.06% since June 26, 2015 and are currently downtrending. It has underperformed the S&P500 by 3.35%.

From a total of 11 analysts covering Pfizer (NYSE:PFE) stock, 7 rate it a “Buy”, 0 a “Sell”, and 4 a “Hold”. This means that 64% of the ratings are positive. The highest target price is $51 while the lowest target price is $34. The mean of all analyst targets is $41.73 which is 38.41% above today’s ($30.15) stock price. Pfizer was the topic of 18 analyst reports since July 29, 2015 according to the firm StockzIntelligence Inc. Barclays Capital initiated shares on December 1 with a “Equal-Weight” rating. S&P Research maintained shares with a”Hold” rating and a $40 target share price in their report from an October 28. Suntrust Robinson upgraded PFE stock in a recent report from November 25 to a “Neutral” rating. Cowen & Co upgraded the rating on October 20. Cowen & Co has a “Outperform” rating and a $43 price target on shares. Finally, Deutsche Bank maintained the stock with a “Buy” rating in a report they issued on an October 28.

The institutional sentiment increased to 1.07 in Q2 2015. It’s up 0.20, from 0.87 in 2015Q2. The ratio increased, as 78 funds sold all their Pfizer Inc. shares they owned while 689 reduced their positions. 83 funds bought stakes while 739 increased their total positions. Institutions now own 3.96 billion shares which is 7.29% less than the previous share count of 4.28 billion in 2015Q2.

Northeast Financial Consultants Inc holds 22.84% of its total portfolio in Pfizer Inc., equating to 1.43 million shares. Healthinvest Partners Ab owns 761,000 shares representing 14.14% of their total US portfolio. Moreover, Whitnell & Co. has 12.9% of their total portfolio invested in the company, equating to 1.04 million shares. The Arkansas-based Foundation Resource Management Inc has a total of 10.92% of their portfolio invested in the stock. New England Professional Planning Group Inc., a Rhode Island-based fund reported 286,282 shares owned.

Pfizer Inc. is a global biopharmaceutical company. The company has a market cap of $188.21 billion. The Firm is engaged in discovering, developing and manufacturing of healthcare products. It has 22.57 P/E ratio. The Company’s products include Lyrica, the Prevnar family of products, Enbrel, Celebrex, Lipitor, Viagra, Zyvox, Sutent, EpiPen, Toviaz, Tygacil, Rapamune, Xalkori, Inlyta, Norvasc, BeneFIX, Genotropin and Enbrel, among others.