Stellar Set Of Numbers From Pfizer Inc. (NYSE:PFE)
Pfizer Inc. (NYSE:PFE) recently reported a profit that was far ahead of analysts’ estimates. The company said that they had lowered the tax rate which was an industry high, and Pfizer’ effort will continue as it also has plans of repurchasing stocks in their billions.Pfizer Inc, the world’s largest drug maker, projected an effective rate of 27% for this year, it is speculated that this is the lowest that they can get as bringing in cash from overseas will lead to tax from the US government.Frank D’Amelio, who is the CFO of the company, said in a statement that “there’s nothing that anyone’s doing in a tax-planning environment that we’re not doing.” Investors looking for Pfizer split Investors are keen to see the split of Pfizer’s drug business. Despite speculation, the division of Pfizer into different units may not happen in the near future. There are also speculations on whether some of the drugs of the company will be taken up by other companies as they no longer have patents on them.CEO Ian Read was quoted as saying, “We have not been approached by anybody that has an offer that would make those scenarios attractive, but we continually look for ways of increasing shareholder value and are open to any of those ideas.”
Q4 earnings for Pfizer were announced where revenue of 56 cents a share was revealed. Net income came down by 59% to $2.57 billion from $6.32 billion from a year ago. Revenue also dropped by 2% to settle at $13.6 billion. As a result of cutting the tax rate to 27.7% and then reducing costs by as much as $291 million,the company said that productivity and efficiency were improving as a result. The main reason as to why the performance of the company was boosted is because of the buyback programs.A total of around $16.3 billion was spent on repurchases; this is around 13% of the stock. The company also said that they will continue buying back shares, around $5 billion shares were to be bought back in 2014.