Merck Earnings: MRK Stock Moves 4% Lower on Spin-Off News

Merck (NYSE:MRK) earnings for the healthcare company’s fourth quarter of 2019 have MRK stock down on Wednesday. This comes after reporting an adjusted EPS of $1.16. That’s better than Wall Street’s estimate of $1.15 for the period. Unfortunately, the company’s revenue of $11.87 billion misses analysts’ estimates of $11.98 billion.

Merck Earnings: MRK Stock Moves 4% Lower on Spin-Off News

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Let’s take a more thorough look at the most recent Merck earnings report.

  • Adjusted earnings per share are up 11.54% from $1.04 in the fourth quarter of 2018.
  • Revenue comes in 7.91% higher than the $11.00 billion from the same time last year.
  • The Merck earnings report also includes a net income of $2.36 billion.
  • That’s a 32.58% increase over the company’s net income of $1.78 during the same period of the year prior.
  • Merck also announced that it will be spinning off parts of its business into a new company.
  • This will include its Women’s Health, Trusted Legacy Brands and Biosimilars Products divisions.
  • The new company is expected to bring in revenue of $6.50 billion during 2020.

Kenneth Frazier, Chairman and CEO of Merck, says this about the MRK stock earnings.

“As evidenced by our results and our 2020 guidance, Merck had an extraordinary year and is in a position of operational and financial strength. It is this position of strength, born of our focused execution, that gives us the confidence to spin off our Women’s Health, trusted Legacy Brands and Biosimilar products into a new company, which will position us to deliver even greater value to patients and shareholders.”

The Merck earnings report also includes its outlook for 2020. It expects adjusted per-share earnings between $5.62 and $5.77. Wall Street’s estimate is for MRK to report adjusted EPS of $5.61 during the year.

MRK stock was down 3.56% Wednesday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.

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