Boston, MA 05/14/2014 (wallstreetpr) – Recently, Pfizer Inc. (NYSE:PFE) has reported the financial results for the Q1 of 2014. Though the results look positive and favorable, the company, in terms of revenue and operations, has reported a decline. Pfizer in its financial report has also revealed the reasons for this decline. Therefore, from the company’s performance in this quarter, it can be concluded that Pfizer is not moving towards growth and no progress was recorded.
In order to achieve progress and development, Pfizer Inc. (NYSE:PFE) has to beat its past performances by reporting better income, better revenue, and better operation, on a quarterly and yearly basis. Showing improvement on a yearly basis but not on a quarterly basis and vice versa, would not suffice.
Q1 earnings reported
Pfizer Inc. (NYSE:PFE) has reported a decrease in its revenue by 9%, which is equivalent to a decline of $1.1 billion on a year-over-year basis. The company also reported a decrease in its operations by $693 million, which is equivalent to a 6% decline on a year-over-year basis. Pfizer also reported that there was an unpleasant impact from the foreign exchange that cost the company around $364 million or a decline of 3% as compared to the last year’s revenue from foreign exchange.
Pfizer reported that the adjusted sales costs and the adjusted Research and Development expenses decreased by 3%, overall. The entire decrease amounted to the sum of $407 million. Pfizer Inc. (NYSE:PFE) also revealed a decrease in the effective tax rate, which amounted to a decrease of 1.8%. Last year the effective tax rate for Q1 was 26.8%, but this year it was reduced to 25%. The company also implemented a rigorous share repurchase program, due to which, a decline in the outstanding shares was reported, which amounted to a total of 793 million shares.
All in all, Pfizer Inc. (NYSE:PFE)’s performance in this quarter was not good as far as the revenues and incomes were concerned, but Pfizer also reported some cost reductions. In short, Pfizer has a lot to work upon and improve in the coming quarters.
