Merck Beats Forecasts on Lower Earnings

by Christopher Freeburn | July 27, 2012 9:55 am

Merck Beats Forecasts on Lower Earnings

Merck (NYSE:MRK[1]) announced on Friday that its second-quarter profit[2] was $1.79 billion, down about 11% from $2.02 billion during the same period last year.

Sales for the quarter were $12.31 billion, edging up 1% from 2011. Adjusted EPS came in at $1.05. The results beat Wall Street, which had been looking for EPS of $1.01 on sales of $12.15 billion, CNBC noted.

The news sent Merck shares up more than 3% in early Friday morning trading.

The drugmaker reiterated previously issued earnings guidelines for the rest of the year, predicting profits of between $3.75 and $3.85 a share. In 2011, Merck generated full year earnings of $3.77 a share.

The patent for its asthma treatment Singulair — which recorded second-quarter sales of $1.43 billion — expires in August, opening the Merck to generic competition against its best-selling medication.

Company officials noted that a rising U.S. dollar was eroding international sales revenue. Subtracting the dollar’s recent rise, sales would have increased 5%.

In the last week, pharmaceutical makers Abbott Laboratories (NYSE:ABT[3]) and AstraZeneca (NYSE:AZN[4]) both reported lower second-quarter earnings[5] compared to last year that still topped analysts estimates[6].

Endnotes:
  1. MRK: http://studio-5.financialcontent.com/investplace/quote?Symbol=MRK
  2. that its second-quarter profit: http://MerckannouncedonFridaythatitssecond-quarterproftwas$1.79billion,downabout11%from$2.02billionduringthesameperiodlastyear.
  3. ABT: http://studio-5.financialcontent.com/investplace/quote?Symbol=ABT
  4. AZN: http://studio-5.financialcontent.com/investplace/quote?Symbol=AZN
  5. reported lower second-quarter earnings: http://investorplace.com/2012/07/abbott-beats-forecast-on-strong-humira-sales/
  6. topped analysts estimates: http://investorplace.com/2012/07/astrazeneca-tops-earnings-forecasts-as-sales-fall/

Source URL: http://investorplace.com/2012/07/merck-beats-forecasts-on-lower-earnings/
Short URL: http://invstplc.com/1nBLB94