Pfizer’s Q3 Profit Tumbles on Lipitor Patent Expiration; Guidance Lowered; New $10 Billion Buyback Program Announced (PFE)
Drug maker Pfizer Inc. ( PFE ) on Thursday posted in-line third quarter profits, although its revenue missed expectations, and unveiled plans for a massive new $10 billion share buyback program.
The New York-based company reported third quarter net income of $3.21 billion, or 43 cents per share, compared with $3.74 billion, or 48 cents per share, in the year-ago period. Excluding special items, adjusted profit was 53 cents per share.
Revenue plunged 16% from last year to $14 billion.
On average, Wall Street analysts expected a matching profit of 53 cents per share, albeit on higher revenue of $14.64 billion.
Looking ahead, PFE lowered its full-year 2012 earnings forecast. The company now expects 2012 earnings of $2.14 to $2.17 per share, down from $2.14 to $2.22 previously.
In another announcement, Pfizer's board of directors approved plans for a massive new $10 billion share buyback program. The new program is in addition its its current repurchase plan, which currently has about $4.1 billion remaining.
Pfizer shares fell 41 cents, or -1.7%, in premarket trading Thursday.
Pfizer Inc. ( PFE ) is a "Recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.
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