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Pfizer Q3 Profit Rises; Lifts 2019 Profit View

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Pfizer Inc. (PFE) on Tuesday reported a profit for third-quarter 2019 that increased 87 percent from last year, reflecting a gain associated with the completion of the Consumer Healthcare joint venture transaction with GlaxoSmithKline plc.

The company raised midpoint of its 2019 revenues guidance range by $200 million, driven by a $400 million of operational revenue improvement, partially offset by a $200 million unfavorable impact from changes in Foreign Exchange rates since mid-July 2019.

The company also increased the midpoint of its 2019 guidance range for adjusted earnings per share by $0.16 reflecting an $0.18 operational improvement, partially offset by a $0.02 unfavorable impact from changes in FX rates.

Albert Bourla, Pfizer's Chief Executive Officer, said, "We reported strong third-quarter 2019 financial results, driven by 9% volume-driven operational revenue growth in our Biopharma business, including growth from key brands such as Ibrance, Xeljanz, Eliquis, Vyndaqel and Inlyta as well as in emerging markets."

The company reported that its third-quarter net income grew 87 percent to $7.68 billion from the prior year's $4.11 billion, with earnings per share improving to $1.36 from $0.69 last year.

The company recognized an $8.1 billion pre-tax gain in the latest-quarter upon the completion of the Consumer Healthcare JV transaction with GSK, reflecting the difference in the fair value of Pfizer's 32% equity stake in the JV and the carrying value of its Consumer Healthcare business.

Adjusted earnings per share were $0.75, compared to $0.77 in the previous year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.62 per share for the third-quarter. Analysts' estimates typically exclude special items.

Quarterly revenues were $12.68 billion, a decrease of 5% from the prior-year quarter, reflecting an operational decline of 3%, as well as the unfavorable impact of foreign exchange of $215 million, or 2%. Analysts expected revenues of $12.26 billion for the quarter.

The company increased its 2019 adjusted earnings per share guidance to a range of $2.94 to $3.00 from the prior outlook of $2.76 to $2.86. Analysts expect annual earnings of $2.82 per share.

Looking ahead for fiscal year 2019, the company anticipates revenues to be in the range of $51.2 billion to $52.2 billion, compared to the prior estimation of $50.5 billion to $52.5 billion. Analysts expects revenues of $51.32 billion.

In pre-market activity on the NYSE, PFE shares were gaining 2.84 percent to $38.32.

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