February 21, 2018 Source: Pfizer 195
Pfizer Inc. (NYSE: PFE) reported financial results for fourthquarter and full-year 2017 and provided 2018 financial guidance.
-- Full-Year 2017 Revenues of $52.5 Billion, Comparable with Full-Year 2016 Operationally; Excluding Impact of February 2017 Divestiture of Hospira Infusion Systems (HIS), Revenues Increased 2% Operationally
-- Fourth-Quarter 2017 Revenues of $13.7 Billion, Comparable with Fourth-Quarter 2016 Operationally;
-- Excluding Impact of February 2017 Divestiture of HIS, Revenues Increased 2% Operationally
-- Full-Year 2017 Reported Diluted EPS of $3.52, Adjusted Diluted EPS of $2.65; Fourth-Quarter 2017 Reported Diluted EPS of $2.02, Adjusted Diluted EPS of $0.62
-- Provides 2018 Financial Guidance, Including Revenues of $53.5 to $55.5 Billion, Adjusted Diluted EPS of $2.90 to $3.00 and Adjusted Effective Tax Rate of Approximately 17.0%
2018 Guidance Midpoints Imply Revenue Growth of 4% and Adjusted Diluted EPS Growth of 11%
-- Anticipates Repatriation Tax Liability of Approximately $15 Billion, Payable to the U.S. Treasury
On December 22, 2017, the U.S. enacted significant changes to U.S. tax law following the passage and signing of H.R.1, “An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018” (also known as the “Tax Cuts and Jobs Act” or the “TCJA”). The TCJA is complex and significantly changes the U.S. corporate income tax system by, among other things, reducing the Federal corporate income tax rate from 35% to 21%, transitioning U.S. international taxation from a worldwide tax system to a territorial tax system and imposing a repatriation tax that is payable over eight years on deemed repatriated accumulated earnings of foreign subsidiaries. Given the significant changes resulting from and complexities associated with the TCJA, the estimated financial impacts for fourth-quarter and full-year 2017 as well as the estimated impact on 2018 Financial Guidance for the effective tax rate on Adjusted income are provisional and subject to further analysis, interpretation and clarification of the TCJA, which could result in changes to these estimates during 2018.
Acquisitions and divestitures completed in 2016 and 2017 impacted financial results in the periods presented. Some amounts in this press release may not add due to rounding. All percentages have been calculated using unrounded amounts. References to operational variances pertain to period-over-period growth rates that exclude the impact of foreign exchange.
2018 FINANCIAL GUIDANCE
Pfizer’s 2018 financial guidance is presented below. Financial guidance reflects a full year contribution from Consumer Healthcare. Pfizer continues to expect that any decision regarding strategic alternatives for Consumer Healthcare will be made during 2018. Financial guidance also assumes no generic competition for Lyrica in the U.S. until June 2019, which is contingent upon a six-month patent-term extension granted by the U.S. Food and Drug Administration (FDA) for pediatric exclusivity, which the company is currently pursuing.
The 2018 financial guidance for the effective tax rate on Adjusted income reflects the enactment of the TCJA. Financial guidance for Adjusted diluted EPS anticipates share repurchases totaling $5.0 billion in 2018. Dilution related to share-based employee compensation programs is expected to offset by approximately half the reduction in shares associated with these anticipated share repurchases.By Ddu
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