|
Pfizer earnings on target
|
 |
April 15, 1999: 1:29 p.m. ET
But stock slumps on warning that Viagra drug sales may not keep pace
|
NEW YORK (CNNfn) - Pfizer Inc. said Thursday that first-quarter earnings rose 18 percent, in line with estimates, but warnings that the initial frenzy over its well-publicized impotency drug Viagra may be waning sent shares in the company down sharply.
The pharmaceutical giant said it earned $815 million, or 62 cents a share, for the quarter ended April 4. That compares with profit of $692 million, or 53 cents per share, in the year-ago quarter.
Revenue for the quarter rose 29 percent to $3.9 billion, the company said, citing strong performance of Viagra and another new drug, the antibiotic Trovan. But New York-based Pfizer (PFE) warned that earnings growth in the second quarter "will be significantly affected" by comparisons to the 1998 quarter,. Viagra was launched in April 1998 with a flurry of sales and stock purchases.
Per-share earnings growth should only be in the single-digit range in the second quarter, the company said.
Shortly after the report was released, shares in Pfizer shot lower, trading down 15-5/8 at 129 on the New York Stock Exchange. Many investors decided to dump their shares because they think that single-digit growth, even in one quarter, isn't good enough for a stock that usually performs better, said Herman Saftlas, an analyst at S&P Equity Group.
"How can you compare against the Viagra launch?' he said. "It's a temporary blip. The third quarter should be good."
Worldwide sales of Viagra stood at $193 million for the quarter. Sales of Trovan, introduced early last year, rose 51 percent over the parallel period to $62 million
The company said worldwide sales of its drug Norvasc, which treats hypertension, jumped 24 percent over the 1998 quarter to $703 million.
Pfizer said that despite some concerns about the company's performance over the rest of 1999, the company is on track to meet annual per-share earnings estimates of $2.40 to $2.50 per share, representing growth of more than 20 percent over 1998. 
|
|
|
|
|
|
Pfizer
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
