This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Pfizer Takes a Flogging

Updated from 12:37 p.m. EDT

Pfizer (PFE - Get Report) saw more than $14 billion lopped off its market cap Thursday after the drugmaker offered disheartening full-year earnings guidance and withdrew its estimates for the next two years.

By late afternoon, the stock was down $1.92, or 8%, to $22.05 in heavy trading, having fallen as low as $21.90. More than 95 million shares had been traded, easily surpassing the average daily volume of 24 million shares for a full session.

Pfizer said it now expects full-year earnings, excluding one-time items, to be in a range of $1.92 to $1.94 a share, down from its previous prediction of $1.98. Analysts polled by Thomson First Call also had been expecting $1.98 for the year.

Shareholder sentiment soured further when the company said it was evaluating its financial prospects for 2006 and 2007 "in light of current and anticipated business conditions and are withdrawing our prior guidance for those years at this time." New guidance will be issued early next year.

In July, Pfizer predicted double-digit earnings per share growth in 2006 and an even greater improvement in 2007.

Tempering Revenue

Pfizer also reported that third-quarter earnings fell sharply from a year ago, weighed down by merger charges. Backing those out, the drug company's earnings topped estimates, but the shares slid on particularly bad fourth-quarter guidance.

The company earned $1.59 billion, or 22 cents a share, in the quarter, compared with $3.34 billion, or 44 cents a share, a year ago. The latest quarter included a charge of $1.96 billion related to merger accounting plus a hodgepodge of other items related to writedowns and restructuring.

Adjusted for everything, Pfizer earned 51 cents a share in the quarter, down 7% from the comparable year-ago number but still 3 cents ahead of the Thomson First Call consensus. Revenue fell 5% from a year ago to $12.19 billion, slightly below the $12.52 billion consensus.
1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
PFE $32.71 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs