--- title: "Dow 30 Earnings: Pfizer Fourth Quarter 2019" description: New York-based drugmaker and Dow-30 component Pfizer (PFE) reported a fourth-quarter GAAP loss of $0.06 a share, versus a $0.07 deficit in the comparable period of 2018. The modest year-over-year improvement was driven by lower production costs (-15%) and a significant reduction in restructuring charges (-48%), which helped mitigate increases in R&D (+15%) and SG&A expenses (+6%), and a 9% pullback in revenues. Meantime, adjusted earnings, which exclude one-time gains, losses and other nonrecurring items, and are more closely followed by Wall Street, came in at $0.55 a share, versus $0.63 in Q4, 2018. image: https://investor.valueline.com/hubfs/social-suggested-images/iStock-463594335-4.jpg --- [![The Value Line Blog](https://investor.valueline.com/hubfs/VL%20Blog%20Images/vl_blog_header.png)](https://investor.valueline.com/blog) [Stock Highlights](https://investor.valueline.com/blog/topic/stock-highlights) # Dow 30 Earnings: Pfizer Fourth Quarter 2019 January 28, 2020 New York-based drugmaker and Dow-30 component Pfizer ([PFE](https://research.valueline.com/research#sym=PFE&list=dow30&sec=company) – [Free Pfizer Stock Report](https://research.valueline.com/api/report?documentID=2185-VL_20200103_VLIS_PFE_4373_01-6A9IJ2NFVD2K9FLD373743VGJU&symbol=PFE)) reported a fourth-quarter GAAP loss of $0.06 a share, versus a $0.07 deficit in the comparable period of 2018. The modest year-over-year improvement was driven by lower production costs (-15%) and a significant reduction in restructuring charges (-48%), which helped mitigate increases in R&D (+15%) and SG&A expenses (+6%), and a 9% pullback in revenues (more below). Meantime, adjusted earnings, which exclude one-time gains, losses and other nonrecurring items, and are more closely followed by Wall Street, came in at $0.55 a share, versus $0.63 in Q4, 2018. The adjusted tally missed consensus expectations looking for $0.58 on average, owing in part to a roughly $40 million miss on the top line. Shares of PFE were trading a few percentage points lower on the release. In the December period, worldwide revenues declined 9% year over year, to $12.69 billion. The pullback primarily reflected the spinoff of the company's consumer healthcare business (completed August 1st), but weakness in the Upjohn generics unit (revenues -32%) and currency headwinds further weighed on the top-line comp. Investors recall that Pfizer lost U.S. patent protection on its blockbuster nerve-pain medication *LYRICA* in mid-2019, and with cheaper generics hitting the market, the franchise posted a 68% year-over-year decline in sales during Q4. On a positive note, the drugmaker did see solid growth in its BioPharma portfolio (+9%), highlighted by gains in rheumatoid arthritis treatment *XELJANZ* (+11%), blood thinner medication *ELIQUIS* (+22%) and a 4% uptick in its top-selling product *PREVNAR* (accounted for 15% of Q4 revenues). Strong growth in Pfizer's top oncology asset *IBRANCE* (+13%, to $1.28 billion) provided further support, though performance here didn't quite meet analyst expectations. In fact, much of the aforementioned top-line miss in Q4 can be attributed to lower-than-expected sales of *IBRANCE*. For full-year 2020, management is targeting adjusted earnings of $2.82-$2.92 a share on revenues of $48.5 billion-$50.5 billion. The ranges assume 12-month contributions from the BioPharma and Upjohn segments and no share repurchases in 2020. It is worth noting that the guidance came in a bit light versus consensus expectations, which likely had something to do with the stock's recent selloff. Under new CEO Albert Bourla, who took the helm in early 2019, Pfizer has pushed forward with a transformation strategy to become a leaner pharmaceutical company with a stronger focus on innovative medicines. Indeed, the drugmaker shed its consumer healthcare business last year via a joint venture with GlaxoSmithKline, its Upjohn generics unit is being spun off and merged with Mylan's (scheduled for mid-2020) and management is expected to continue to pursue M&A and business development deals to bolster higher-margin areas of the portfolio. In our view, we are encouraged with the strategic direction and believe it will better position the company for sustainable long-term growth. Based on our current projections, PFE shares boast decent capital appreciation potential over the 18-month and 3- to 5-year time frames. They also maintain solid investment appeal for those seeking a lower-risk income play in the large pharmaceutical space. **About The Company**: [Pfizer](https://www.valueline.com/WorkArea/linkit.aspx?LinkIdentifier=id&ItemID=9375) is a major producer of pharmaceuticals. The company is engaged in discovering, developing, and manufacturing of healthcare products. Important product names include *LYRICA* (nerve and muscle pain); *PREVNAR* (vaccine); *ENBREL* (arthritis, psoriasis, and more); *IBRANCE* (advanced breast cancer) and *CELEBREX* (osteoarthritis, rheumatoid arthritis). The company acquired injectable drugmaker Hospira in 2015 and medical devices producer Medivation in 2016. – Michael Ratty *At the time of this article’s writing, the author did not have positions in any of the companies mentioned.* [![Register now for our free One Stock to Buy webinar](https://no-cache.hubspot.com/cta/default/2532383/5a80130b-f0ce-4bd8-acbd-f077f2232ec5.png)](https://cta-redirect.hubspot.com/cta/redirect/2532383/5a80130b-f0ce-4bd8-acbd-f077f2232ec5) ### Popular Posts Search Search Blog ### Topics - [Investing 101 (2)](https://investor.valueline.com/blog/topic/investing-101) - [Market Commentary (37)](https://investor.valueline.com/blog/topic/market-commentary) - [Stock Highlights (390)](https://investor.valueline.com/blog/topic/stock-highlights) - [Stock Market Today (2071)](https://investor.valueline.com/blog/topic/stock-market-today) Copyright 2026 Value Line, Inc. All Rights Reserved. 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