Pfizer (PFE) reported Tuesday that its second-quarter profit increased 9%, handily beating analyst expectations, as it further cut costs and revenue jumped sharply due to its acquisition of Wyeth last October.
Pfizer's second-quarter net income was $2.48 billion, or 31 cents per share, up from $2.26 billion, or 34 cents per share, a year earlier. Pfizer's adjusted earnings per share were 62 cents, beating estimates of 52 cents per share.
The world's biggest drugmaker reported revenue that soared 58% to $17.33 billion from $10.98 billion in the same quarter last year. Analysts were expecting revenue of $16.65 billion.
The maker of top-selling drug ever, cholesterol blockbuster Lipitor, is counting on products from Wyeth to help it overcome lost sales due generic competition when Lipitor and other drugs lose patent protection.
"During the quarter, Pfizer's more balanced global portfolio, which includes small molecules, biologics and vaccines as well as off-patent pharmaceuticals and diversified products generated strong performance in a period of notable worldwide economic uncertainty," said Jeff Kindler, chairman and CEO.
Kindler outlined several different drug initiatives, including the recent launch of the Prevnar 13 children's vaccine, advances in its research and the push into emerging markets. "We believe that these actions, in addition to a modest level of business development, will continue to support consistent, solid financial results," Kindler said.
Looking ahead, CFO Frank D'Amelio reaffirmed 2010 and 2012 financial target. For 2010, Pfizer expects 2010 adjusted diluted EPS will be at the upper end of its guidance range of $2.10 to $2.20 on revenue of $67 billion to $69 billion. For 2012, at current exchange rates, Pfizer is targeting reported revenues between $65.2 billion and $67.7 billion, and adjusted diluted EPS between $2.25 and $2.35.
Pfizer shares rose about 2.5% in premarket trading.
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