Pharmaceuticals giant Pfizer Inc (NYSE:PFE) narrowed its full year guidance after third quarter earnings beat analyst’s expectations but revenues disappointed.
Net income rose to $4.1bn, or 69 cents per share, in the quarter to September 30, from $2.84bn, or 47 cents a share, a year ago. Excluding items, earnings per share came to 78 cents, beating estimates of 75 cents.
The company generated revenue of $13.3bn, up 1% on the previous year but lower than the market forecast of $13.5bn.
For the year, Pfizer narrowed its revenue forecast to between $53bn and $53.7bn from a previous guidance of $53bn to $55bn. Adjusted earnings for the year are expected to reach $2.98 to $3.02bn, compared to an earlier forecast of $2.95 to $3.05.
READ: Pfizer 2Q earnings beat Street on higher sales of Prevnar vaccine, arthritis drug Xeljanz
Outgoing chief executive Ian Read said the group reported a solid third quarter, driven by growth in its key brands including Eliquis, Ibrance, Prevnar 13, Xeljanz and Xtandi.
“The performance of these growth drivers was partially offset by product losses of exclusivity, a decline in legacy established products in developed markets and ongoing legacy Hospira sterile injectable supply shortages,” said Read, who is being replaced by Pfizer's chief operating officer Albert Bourla in January 2019.
“We believe we are well-positioned to develop and commercialize differentiated new medicines, creating sustainable value for shareholders and patients. Our new organisational structure allows us to focus on maximizing the opportunity of our in-market products, advancing key pipeline programs and accelerating growth in emerging markets.”
Pfizer completed the sale of its global infusion therapy net assets, Hospira Infusion Systems, to ICU Medical Inc for $1bn in cash in February as part of its strategy to focus on its core pharmaceuticals business.
In pre-market trading, shares fell 2.7% to $42.03 each.