Pfizer cuts full-year forecast on stronger dollar
(Reuters) – U.S. drugmaker Pfizer Inc (PFE.N) cut its full-year revenue and profit forecast, blaming a stronger dollar.
However, the drugmaker reported a better-than-expected first-quarter profit, helped by demand for its vaccines and cancer drugs.
Pfizer’s shares were roughly unchanged at $34.62 in premarket trade on Tuesday morning.
The company, which got 60 percent of its 2014 revenue from outside the United States, cut its 2015 revenue forecast to $44-$46 billion from $44.5-$46.5 billion.
Pfizer also cut its profit forecast, joining Johnson & Johnson (JNJ.N), which also lowered its forecast earlier this month.
The dollar .DXY had gained nearly 9 percent against a basket of major currencies from January to March, after rising 13 percent in 2014.
Pfizer’s net profit rose to $2.38 billion, or 38 cents per share, in the latest quarter, from $2.33 billion, or 36 cents per share, a year earlier.
Excluding items, Pfizer earned 51 cents per share, beating the average analyst estimate of 49 cents, according to Thomson Reuters I/B/E/S.
Revenue fell 4 percent to $10.86 billion, but beat analysts’ estimate of $10.76 billion. Pfizer’s global vaccines sales rose 44 percent to $1.33 billion.
The stock had risen about 12 percent in the three months to March 31, while the broader Dow Jones industrial Average Index .DJI had fallen 1.45 percent.
(Reporting by Ankur Banerjee in Bengaluru; Editing by Saumyadeb Chakrabarty and Savio D’Souza)
Source: Reuters Health