Pfizer forecasts 2016 revenue, earnings below estimates
Drugmaker Pfizer, which is in the process of buying Botox-maker Allergan for $160bn, forecast 2016 revenue and earnings below analysts' estimates, citing generic competition and a strong dollar.
The company, which will soon be headquartered here following the Allergan deal, said it expects reported revenue of $49 billion-$51 billion for the full year and adjusted earnings of $2.20-$2.30 per share.
Analysts on average were expecting revenue of $52.49 billion and earnings of $2.36 per share.
The company's shares were down 1.6 percent at $29.70 in premarket trading on Tuesday. They had fallen 7 percent this year until Monday.
However, Pfizer reported better-than-expected revenue in the fourth quarter, helped by demand for its pneumonia vaccine and its Hospira acquisition.
Revenue rose 7 percent to $14.05 billion in the fourth quarter, ahead of the average analyst estimate of $13.56 billion, according to Thomson Reuters I/B/E/S.
Global Vaccines revenue rose 45 percent to $1.92 billion, driven by a 102 percent growth in its pneumonia vaccine, Prevnar 13, in the United States.
Pfizer bought Hospira Inc for about $15 billion last year to boost its portfolio of generic injectable drugs and copies of biotech medicines. The deal closed on Sept. 3.
Net income fell to $613 million, or 10 cents per share in the quarter, from $1.23 billion, or 19 cents per share, a year earlier.
On an adjusted basis, the company earned 53 cents per share, above analysts' average estimate of 52 cents.
The company agreed to buy Allergan last year in a deal that will slash its tax rate. The deal, which will shift Pfizer's headquarters to Dublin, is slated to close in the second half of 2016.