--- title: "Dow 30 Earnings: Pfizer Second Quarter Fiscal 2017" description: dow 30 earnings, pfizer has strong finances, high-grade fundamentals, and an impressive track record, attractive core holding within the large pharma space image: https://investor.valueline.com/hubfs/VL%20Blog%20Images/iStock-463594335.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 Second Quarter Fiscal 2017 August 1, 2017 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/research#sym=PFE&list=dow30&sec=company)) has reported second-quarter earnings of $0.51 a share, versus $0.33 in the comparable period of 2016. The year-over-year improvement was driven primarily by a sharp decline in production costs (-16%), which more than offset a 2% pullback in sales. Reduced restructuring and acquisition-related expenses (-78%) and modestly lower R&D outlays (-1%) provided further support to the bottom line. Meantime, adjusted earnings, which exclude one-time gains, charges, and other nonrecurring items, and are more closely followed by Wall Street, came in at $0.67 a share, versus $0.64 in 2016. While the adjusted tally beat consensus expectations of $0.66 a share, it was somewhat overshadowed by lingering softness on the top line. Shares of PFE were trading modestly lower on the release. In the June period, total sales fell 2% year over year, to $12.9 billion. The figure came up short of Wall Street's $13.1 billion target and marked the third-consecutive top-line decline. Looking at the portfolio, Pfizer's Innovative Health segment, which sells newer, patent-protected drugs, contributed sales of $7.67 billion, representing growth of 8% year over year. Comps benefited from continued strength in top oncology asset *IBRANCE* (+66%), rheumatoid arthritis treatment *XELJANZ* (+55%), and blood thinner medication *ELIQUIS* (+50%). A solid contribution from number-two seller *LYRICA* (+5%) and the addition of* XTANDI *(acquired in the Medivation deal) provided further support, helping to offset lingering weakness in the top-grossing *PREVNAR *vaccine franchise (-8%) and continued overseas generic erosion of* ENBREL *(-20%). Meanwhile, Pfizer's Essential Health segment, which sells older, mostly off-patent drugs, saw its sales decline 14%, to $5.23 billion. A 30% decrease in Peri-LOE Products was the primary drag, due, in part, to the *PRISTIQ* franchise losing marketing exclusivity in the U.S. in March of 2017. Strong growth in the biosimilars segment (+55%) helped to lighten the blow, driven by growth in *INFLECTRA*. Looking ahead, Pfizer will clearly be facing some pressure within its core product lineup over the next few years. *PREVNAR* sales continue to decline as its target market (older adults) appears to have reached a saturation point; *ENBREL* and *VIAGRA* are fading due to exclusivity losses in key markets; and LYRICA's U.S. patent is scheduled to expire in 2018. Given that these four products combined accounted for roughly a quarter of Pfizer's total sales last year, further development of the new product cycle will be imperative. While we are encouraged with some of the newer assets, particularly* IBRANCE *where peak sales estimates have ranged as high as $5 billion annually, we wouldn't be surprised if management executed another large-scale acquisition to bolster the portfolio. Following the second-quarter report, management narrowed its 2017 full-year adjusted earnings guidance to $2.54-$2.60 a share (previously $2.50-$2.60). All told, we continue to view Pfizer as an attractive core holding within the large pharma space. The company has strong finances, high-grade fundamentals, and an impressive track record. An above-average dividend yield and expectations for continued stock repurchases should enhance shareholder value. **About The Company: **Pfizer 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. *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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