On Tuesday, Pfizer (NYSE: PFE) stepped into the earnings spotlight, announcing a higher third-quarter profit compared to last year. The pharmaceutical firm earned 43 cents per share, or 51 cents per share in adjusted earnings. A year ago, PFE earned 34 cents per share before item exclusions. The Street expected PFE to report third-quarter earnings of 48 cents per share excluding items. Quarterly revenue checked in at $11.62 billion, 3% lower than last year's third-quarter revenue. Revenue was pulled roughly 5% lower due to unfavorable foreign exchange rates.
PFE forecast 2009 revenue of $49 billion to $50 billion, which is higher than the company's earlier forecast of $45 billion to $46 billion. Earnings were forecast to come in between $1.45 and $1.50 per share, which is also higher than the earlier predicted range of $1.30 to $1.45 per share.
PFE attributed the stronger-than-expected results to cost cutting, which helped stem the tide of lower sales. The drug maker said it will continue to cut costs, especially in the wake of its acquisition of Wyeth (which closed last Thursday). By the time the integration of Wyeth is over, nearly 20,000 jobs will be lost. The Wyeth acquisition should give PFE roughly $57 billion per year in revenue thanks to lucrative products across the company's product line.
Technically, the stock has enjoyed a bit of a resurgence in 2009. Now that the stock is positioned north of its 10- and 20-month moving averages we could see the shares enjoy a bit of support. This support could be needed as the stock prepares to battle potential resistance at the round-number $20 level.
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