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New Jersey-based Merck & Co. Inc. (MRK - Free Report) is a global research-driven pharmaceutical products company. Well known products in Merck’s portfolio include Remicade, Nasonex, Simponi, Vytorin and Zetia, Januvia and Janumet, Isentress, PegIntron, Maxalt, Cosopt/Trusopt, Temodar, Emend, Keytruda, Cozaar/Hyzaar, Zocor, Proscar, ProQuad, Gardasil, RotaTeq, Zostavax and NuvaRing.
However, like many of its peers, Merck is facing headwinds in the form of generic competition for several key products. The company sold off its Consumer Care business to Bayer for $14.2 billion in Oct 2014. Meanwhile, Merck acquired hepatitis C virus focused company Idenix Pharmaceuticals in Aug 2014 and Cubist Pharmaceuticals in 2015. Merck is also focusing on immuno-oncology.
Merck has a pretty good earnings track record with the company delivering positive earnings surprises in each of the last four quarters with an average surprise of 3.37%. Estimates, however, have been stable over the past 60 days.
Currently, Merck has a Zacks Rank #2 (Buy), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings Beat: Merck surpassed third-quarter 2016 earnings expectations. The company reported EPS of $1.07 while our consensus called for EPS of 98 cents.
Revenues Beat: Revenues in the reported quarter also came in above expectations. Merck posted revenues of $10.54 billion above our consensus estimate of $10.24 billion.
2016 Outlook Narrowed and Upped: Merck narrowed and raised both 2016 earnings and revenue guidance. The company now expects earnings in the range of $3.71 to $3.78 per share, including an approximately 1% negative impact from currency fluctuation. At the time of releasing second-quarter 2016 results, the company had guided towards earnings of $3.67–$3.77 per share, including an approximately 1% negative impact from foreign exchange.
Merck now expects revenues in the range of $39.7 billion–$40.2 billion, including negative currency impact of approximately 2%. At the time of releasing second-quarter 2016, the company had guided towards revenues of $39.1 billion–$40.1 billion, including an approximately 2% negative impact from foreign exchange.
The Zacks Consensus Estimate for earnings is $3.74 per share on revenues of $39.65 billion, respectively.
Stock Price Impact: Shares were up 1.7% in pre-market trading.
Check back later for our full write up on this MRK earnings report!
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Merck (MRK) Tops Q3 Earnings, Revenue Estimates
New Jersey-based Merck & Co. Inc. (MRK - Free Report) is a global research-driven pharmaceutical products company. Well known products in Merck’s portfolio include Remicade, Nasonex, Simponi, Vytorin and Zetia, Januvia and Janumet, Isentress, PegIntron, Maxalt, Cosopt/Trusopt, Temodar, Emend, Keytruda, Cozaar/Hyzaar, Zocor, Proscar, ProQuad, Gardasil, RotaTeq, Zostavax and NuvaRing.
However, like many of its peers, Merck is facing headwinds in the form of generic competition for several key products. The company sold off its Consumer Care business to Bayer for $14.2 billion in Oct 2014. Meanwhile, Merck acquired hepatitis C virus focused company Idenix Pharmaceuticals in Aug 2014 and Cubist Pharmaceuticals in 2015. Merck is also focusing on immuno-oncology.
Merck has a pretty good earnings track record with the company delivering positive earnings surprises in each of the last four quarters with an average surprise of 3.37%. Estimates, however, have been stable over the past 60 days.
Currently, Merck has a Zacks Rank #2 (Buy), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings Beat: Merck surpassed third-quarter 2016 earnings expectations. The company reported EPS of $1.07 while our consensus called for EPS of 98 cents.
Revenues Beat: Revenues in the reported quarter also came in above expectations. Merck posted revenues of $10.54 billion above our consensus estimate of $10.24 billion.
2016 Outlook Narrowed and Upped: Merck narrowed and raised both 2016 earnings and revenue guidance. The company now expects earnings in the range of $3.71 to $3.78 per share, including an approximately 1% negative impact from currency fluctuation. At the time of releasing second-quarter 2016 results, the company had guided towards earnings of $3.67–$3.77 per share, including an approximately 1% negative impact from foreign exchange.
Merck now expects revenues in the range of $39.7 billion–$40.2 billion, including negative currency impact of approximately 2%. At the time of releasing second-quarter 2016, the company had guided towards revenues of $39.1 billion–$40.1 billion, including an approximately 2% negative impact from foreign exchange.
The Zacks Consensus Estimate for earnings is $3.74 per share on revenues of $39.65 billion, respectively.
MERCK & CO INC Price
MERCK & CO INC Price | MERCK & CO INC Quote
Stock Price Impact: Shares were up 1.7% in pre-market trading.
Check back later for our full write up on this MRK earnings report!
Confidential from Zacks
Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>