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Merck (MRK) Tops on Q1 Earnings, Misses Sales

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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, Emend, Keytruda, Cozaar/Hyzaar, Zocor, ProQuad, Gardasil, Zostavax and others.

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 October 2014. Meanwhile, Merck acquired pulmonary fibrosis focused company Afferent Pharmaceuticals in July 2016 while Rigontec acquisition in October 2017 added an early-stage cancer candidate to its piepeline. Merck is also focusing on immuno-oncology.

Merck’s performance has been pretty impressive, with the company exceeding earnings expectations in all the trailing four quarters. The average positive earnings surprise over the last four quarters is 8.54%

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 earnings expectations. The company reported EPS of $1.05 while our consensus called for EPS of 99 cents.

Revenues Miss: Revenues in the reported quarter came slightly below expectations. Merck posted revenues of $10.04 billion below our consensus estimate of $10.12 billion.

2018 Outlook Raised: Revenues are expected in the range of $41.8 billion – $43.0 billion (previously $41.2 billion – $42.7 billion) in 2018. The Zacks Consensus Estimate stood at $41.83 billion.

The company raised adjusted earnings expectation in the range to $4.16–$4.28 from $4.08–$4.23. The Zacks Consensus Estimate stood at $4.18 per share.

Stock Price Impact: Shares were up around 0.5% in pre-market trading.

Check back later for our full write up on this MRK earnings report!

Merck & Co., Inc. Price and EPS Surprise

 

Merck & Co., Inc. Price and EPS Surprise | Merck & Co., Inc. Quote

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