) to report in line first-quarter 2013 results before the opening
bell on Apr 30, 2013.
MERCK & CO INC (MRK): Free Stock Analysis
PFIZER INC (PFE): Free Stock Analysis Report
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ZOETIS INC (ZTS): Free Stock Analysis Report
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Factors at Play for 1Q
We expect Pfizer to struggle to post meaningful top-line growth
going forward. The company has entered a challenging operating
period with the loss of patent exclusivity on Lipitor, Norvasc,
Protonix, Camptosar and Zoloft. These products are all facing
declining sales due to generic competition. In 2013, revenues
will be hit by about $4 billion due to genericization and the
expiration of a few co-promotion agreements.
While near-term earnings will be driven by cost cutting efforts
and share repurchases, longer-term growth will depend on the
success of drug development.
The efforts of Pfizer notwithstanding, first-quarter 2013 results
will likely continue to be hurt by the genericization. Pfizer
spun off its Animal Health business in Feb 2013, in order to
streamline its operations. The spun off entity is currently
trading on the New York Stock Exchange as
). We note that the Animal Health business generated sales of
$1.2 billion in the fourth quarter of 2012 accounting for 7.8% of
Pfizer has delivered positive earnings surprises in the last four
quarters with an average beat of 6.26%.
Our proven model does not conclusively show that Pfizer is likely
to beat earnings estimates this quarter. This is because a stock
needs to have both a positive earnings Expected Surprise
Prediction (ESP) (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1, 2 or 3 for this to happen.
: The ESP, which represents the difference between the Most
Accurate estimate and the Zacks Consensus Estimate, is 0.00%.
This is because both the Most Accurate Estimate and Zacks
Consensus Estimate currently stand at 55 cents.
Zacks Rank #3 (Hold)
: Pfizer's Zacks Rank #3 lowers the predictive power of ESP
because the Zacks Rank #3 when combined with an ESP of 0.00%
indicates the possibility of in line results.
Stocks to Consider
Here are some other stocks you may want to consider as our model
shows these have the right combination of elements to post an
earnings beat this season:
Merck & Co. Inc.
) has an earnings ESP of +1.28% and holds a Zacks Rank #3.
) has an earnings ESP of +7.84% and holds a Zacks Rank #3.