Q4 Preview: Pfizer (PFE) May Suffer Same Ailment as Peers: Strong Dollar Syndrome


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Pfizer Inc. ( PFE ) is trading lower Monday afternoon heading into its fourth-quarter report, which are expected out before the market opens on Tuesday.

The Street sees earnings of 47 cents per share on revenue of $16.61 billion. Earnings would be a 13 percent drop from the same period last year. On average, Pfizer has beat earnings views by 4.6 percent over the last 5 quarters.

Shares gained 23.7 percent in the quarter, to $21.64 at the end of December. Shares have been relatively flat since the, but Pfizer did end 2011 about 29 percent better.

Competitors like Abbott ( ABT ), Bristol Myers-Squibb ( BMY ), and -- to a lesser extent -- Johnson & Johnson ( JNJ ) have all signaled warnings following quarterly reports. Even Lilly ( LLY ) said it expected to miss 2012 revenue expectations. With Pfizer trading near annual highs of $22.17, investors might end up being cautious this quarter.

Data from Bloomberg has 21 analysts at Buy on Pfizer, 4 with a Hold, and 2 at Sell. The Street's price target average is $24, with a low of $19 and high of $30.

Goldman Sachs issued a bit of a preview for Pfizer heading into results. The firm is modeling earnings of 46 cents per share, expecting head winds from foreign exchange fluctuations.

Due to the strengthening U.S. dollar, Goldman is expecting management to guide fiscal 2012 EPS expectations lower, from $2.35 - $2.25 to a range of $2.15 - $2.25. The Street currently expects $3.30. Key topics on the call will be: (1) Lipitor market share during the first 180 days; (2) gross margin impact from LOEs; (3) decisions and timing related to Nutritionals/animal health divestitures; (4) Eliquis launch plans; and (5) pipeline updates, including bapineuzumab timeline.

Stay tuned to StreetInsider.com's EPS Insider section to see our analysis of the highly-anticipated quarterly results within seconds of their release. You can also check out Pfizer's past performance at Streetinsider's Pfizer's Income Statement .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Stocks
Referenced Stocks: ABT , BMY , JNJ , LLY , PFE

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