New ETF Book by Larry Connors - Click here to read more
Wyeth has benefited from its diverse product mix and the company has been able to delay generic competition for its antidepressant drug Effexor. However, it has been hurt by generic competition for its ulcer drug Protonix. The company said earlier this year that it would eliminate about 10% of its workforce by 2012. During the quarter, the company received FDA approval for Relistor for the treatment of opioid-induced constipation, while approval for its osteoporosis treatment Viviant was held up by the agency.
Second Quarter Results
The Madison, New Jersey-based company's net income for the second quarter declined to $1.12 billion, or $0.83 per share, from $1.20 billion, or $0.87 per share, in the same period last year.
Results for the quarter include charges of $110.5 million after-tax, or $0.08 per share, related to the company's productivity initiatives, while the year-ago results include productivity initiative charges of $37.0 million after-tax, or $0.03 per share.
The company noted that the charges for the latest quarter include expenses of $155.2 million. These were primarily incurred for severance and other employee-related costs associated with a reduction in workforce of approximately 6%, many of whom were selling and marketing personnel who supported Protonix.
Before certain significant items, net income for the quarter declined to $1.23 billion from $1.24 billion a year ago. However, earnings per share increased to $0.91 per share from $0.90 in the same period last year. On average, fourteen analysts polled by First Call/Thomson Financial expected the company to report earnings for the quarter of $0.87 per share.
Worldwide net revenue increased 5% to $5.95 billion from $5.65 billion in the year-ago quarter, and came in above analysts' consensus revenue estimate of $5.69 billion.
Wyeth's sales for the quarter were driven by the company's core products, Enbrel, Prevnar and Nutrition products, and the favorable impact of foreign exchange. This was partly offset by a 59% drop in sales of Protonix on account of ongoing generic competition.
Bernard Poussot, Chairman, President and Chief Executive Officer of Wyeth said, "We are pleased with the volume growth we experienced internationally which was enhanced by foreign exchange rates, and continue to build upon the strength of our biotech products Enbrel and Prevnar, as well as our growing nutritional franchise. We also have the advantage of diverse businesses - pharmaceuticals, consumer healthcare and animal health."
Peer Performance
Pfizer Inc. (PFE | Quote | Chart | News | PowerRating) reported a profit for the second quarter that more than doubled from the prior year, helped by lower restructuring charges, positive foreign exchange impact and double-digit international revenue growth. Net income for the quarter surged to $2.78 billion, or $0.41 per share from $1.27 billion, or $0.18 per share a year ago. Excluding one-time items, adjusted net income climbed 26% to $3.70 billion from $2.94 billion a year ago, while adjusted earnings per share rose 31% to $0.55 from $0.42 last year. Quarterly revenues grew 9% to $12.13 billion from the previous year's revenue of $11.08 billion.
Wyeth's Segmental Results
On a segmental basis, worldwide pharmaceuticals net revenue increased 5% to $4.97 billion primarily to higher sales of Effexor, Enbrel, Prevnar, Nutrition products and Zosyn, and the favorable impact of foreign exchange. In addition, new products Tygacil, Torisel and Pristiq, also contributed to net revenue growth. The increase was partly offset by lower sales of Protonix due to generic competition.
Sales of antidepressant Effexor increased 5% to $1.02 billion, while sales of the company's Prevnar vaccine for pneumococcal infections increased 9% to $691 million. Sales of arthritis drug Enbrel outside the U.S. and Canada surged 36% to $284 million. However, sales of the Protonix family dropped 59% to $228 million.
Results for Wyeth Nutrition were driven by outstanding performances from key markets, including China and Australia, and the continued expansion of the company's new premium Gold Line formula with Lutein - a nutrient to help with children's visual health.
Worldwide Consumer healthcare net revenue increased 7% to $665 million, due increase in sales of Centrum, Advil and Caltrate, as well as the favorable impact of foreign exchange, partially offset by lower sales of Alavert and Dimetapp.
Worldwide Animal Health net revenue increased 12% to $313 million, led by higher sales of poultry products and livestock products driven by Zulvac bluetongue vaccine, the favorable impact of foreign exchange and higher sales of companion animal products.
Year-To-Date Results
For the six months, the company's net income declined to $2.32 billion, or $1.72 per share, from $2.45 billion, or $1.79 per share, in the year-ago period. On an adjusted basis, net income for the half-year period was $2.50 billion, or $1.85 per share, compared to $2.52 billion, or $1.84 per share in the prior-year period.
Revenue for the six-month period increased to $11.66 billion from $11.02 billion in the previous-year period.
Outlook
For fiscal year 2008, the company raised its pro forma earnings per share outlook to a range to $3.47-$3.55 from the prior range of $3.35-$3.49. Analysts expect the company to earn $3.45 per share for the year.
CEO Poussot said, "We are increasing 2008 pro forma earnings guidance due to the positive results achieved to date and the momentum we see going forward."
Stock Quote
In Wednesday's regular trading session, WYE is trading at $46.13, up $1.45 or 3.25% on a volume of 1.45 million shares. The stock has been trading in a range of $38.39-$54.94 in the past 52 weeks.
For comments and feedback: contact editorial@rttnews.com Copyright(c) 2008 RealTimeTraders.com, Inc. All Rights Reserved
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
15260 Ventura Blvd., Ste. 2200
Sherman Oaks, CA 91403
© Copyright 2009 The Connors Group, Inc.
