) is set to report third quarter 2013 results on Oct 29, before
the opening bell. Last quarter it posted a positive earnings
surprise of 3.70%. Let's see how things are shaping up for this
Factors to Consider this Quarter
This biopharmaceutical company has delivered positive earnings
surprises in three of the last four quarters with an average beat
However, in the third quarter, genericization will continue to
hit revenues which will eventually affect the company's top line.
The loss of exclusivity of Lipitor and Revatio/Viagra among
others in major markets will weigh heavily on the company's
revenue figure. To mitigate the impact of genericization the
company is looking to contain costs and develop its pipeline.
Focus in the third quarter will be on the performance of newly
Pfizer's Emerging Markets revenues remained flat last quarter. At
the time of releasing second quarter results, Pfizer had stated
that it expects the second half of the year to be stronger for
its emerging markets business, especially in China. Consequently,
focus will also be on the performance of the emerging markets'
drugs in the third quarter of 2013. Moreover, we expect the
company to throw further light on its pipeline development
efforts, while releasing the third quarter results.
We are not confident about an earnings beat this quarter going by
our proven model. This is because a stock needs to have both a
and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) to be
able to beat Zacks Consensus Estimate.
: 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 the Zacks
Consensus Estimate currently stand at 56 cents.
Zacks Rank #3
: Pfizer's Zacks Rank #3, however, increases the predictive power
of ESP. That said we also need to have a positive ESP to be
confident of an earnings surprise call.
We caution against stocks with Zacks Ranks #4 and #5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions momentum.
Stocks to Consider
Here are some stocks you may want to consider as our model shows
that these have the right combination of elements to post an
earnings beat this season:
), with Earnings ESP of +2.82% and a Zacks Rank #2.
Endo Health Solutions Inc.
), with Earnings ESP of +0.89% and a Zacks Rank #3.
), with Earnings ESP of +1.28% and a Zacks Rank #3.
ENDO PHARMACEUT (ENDP): Free Stock Analysis
INTERMUNE INC (ITMN): Free Stock Analysis
MYLAN INC (MYL): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
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