Join        Login             Stock Quote

Merck (MRK) 1Q Earnings Jump As Expenses Drop, Revenue Misses

 April 27, 2012 07:56 AM

(By Balachander) Merck & Co. Inc. (NYSE:MRK) reported better-than-expected quarterly earnings, spurred by gains from sale of its diabetes drugs and lower expenses. However, the drug maker's revenue fell shot of Wall Street projections.

On a non-GAAP basis, earnings per share (EPS) increased 7.6 percent to 99 cents, beating market expectations by a penny. GAAP EPS jumped 65 percent to 56 cents.

Sales edged 1.3 percent higher to $11.73 billion, slightly shy of consensus estimate of $11.82 billion on reduction in revenue from alliances and third-party manufacturing sales.

"We're continuing to drive double-digit growth of key brands like Januvia, Gardasil and Isentress, launch new products like Victrelis and achieve solid performance from our diverse businesses," CEO Kenneth Frazier commented.

[Related -Forest Laboratories, Inc. (NYSE:FRX): Should Astrazeneca Plc Buy Forest Labs?]

Sales of diabetes drug Januvia soared 24 percent to $919 million, while revenue of Gardasil, Merck's human papillomavirus vaccine, jumped 33 percent to $284 million.

Research and development expenses dropped 14 percent to $1.86 billion.

Looking ahead for the full year, the company still expects non-GAAP EPS in the range of $3.75 to $3.85 on revenue to be at or near 2011 levels on a constant currency basis. Analysts expect EPS of $3.80 on revenue of $47.4 billion.

MRK shares, which have been trading in the 52-week range between $29.47 and $39.43, closed Thursday's regular trading at $38.47.



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageAutomating Ourselves To Unemployment

In this current era of central planning, malincentives abound. We raced to frack as fast we could for the read on...

article imageFed: Waiting For June… Or Godot?

The Federal Reserve left interest rates unchanged yesterday, as widely expected. But the possibility of a read on...

article imageThe Single Best Place To Invest Your Money For Retirement

It was never supposed to be this daunting. At least that's what we were read on...

article imageNegative Blowback From Negative Interest Rates

The Federal Reserve is widely expected to leave interest rates unchanged today. But perhaps standing pat read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.