Merck (MRK) Tops on Q1 Earnings & Revenues, Shares Up - Tale of the Tape
New Jersey-based Merck (MRK), 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. Merck is currently evaluating strategic alternatives for certain parts of its business so that it can streamline operations and focus on certain therapeutic areas. 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 in Aug 2014. Merck also acquired Cubist earlier this year. Merck is also focusing on immune-oncology.
MRK 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 5.24%. Estimate revisions are, however, mostly negative with analysts lowering their estimates for 2015.
Currently, MRK has a Zacks Rank #3 (Hold), 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 by Wide Margin: MRK beat on first quarter earnings by 10 cents. The company reported EPS of 85 cents while our consensus called for EPS of 75 cents.
Revenue Beat: Merck’s first quarter revenues came in at $9.425 billion, beating consensus estimates of $8.98 billion. Currency fluctuation hit revenues by 5%.
Ups Earnings Outlook: Merck now expects 2015 earnings in the range of $3.35 - $3.48 per share. Revenue guidance remained unchanged at $38.3 billion - $39.8 billion. While revenue guidance includes a $2.8 billion negative impact from foreign exchange and about $1 billion of net lost sales from acquisitions and divestitures, the earnings guidance includes a 27 cent negative impact due to currency movement. The Zacks Consensus Estimate for earnings and revenues is currently $3.39 per share and $38.9 billion, respectively.
Pre-Market Trading: Merck’s shares were up 4.62% in pre-market trading.
Check back later for our full write up on this MRK earnings report!
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