Merck & Co., Inc. (NYSE: MRK)
Merck & Co. stock saw incredible gains this morning following an overwhelmingly positive earnings report. So, we’ll take a look at the earnings report and what was so positive, how the market reacted, and chat about what we can expect to see in the future from the stock! Let’s get to it…
MRK Exceeds Earnings Expectations
Merck & Co. earnings are the big story today. If you’d like in depth details of the report, click here. Here’s the overview!
- Earnings Per Share – While analysts expected to see earnings per share around $0.75, the number came in at $0.85. Unfortunately however, year over year this is a decline of 3.4%.
- Top Line Revenue – Top line revenue also declined in the quarter. However, the decline wasn’t as wide as expected. Analysts expected revenue for the quarter to come in at $8.98 billion. The company far surpassed that figure; reporting $9.425 billion in revenue for the quarter.
- Guidance – As a result of the unexpectedly positive quarter, MRK increased its EPS guidance from between $3.32 and $3.47 to between $3.35 and $3.47. However, revenue guidance remains unchanged.
Looking at the data above, it’s clear to see that although we’ve seen declines, the company far outperformed what analysts expected of it.
How MRK Reacted In The Market
As a result of the unexpected positive news, Merck & Co. stock saw pretty impressive gains in morning trading today. Currently (1:10), the stock is trading at $60.04 per share after a gain of 5.15% so far today.
What We Can Expect Moving Forward
Moving forward, I think we’re going to continue to see positive movement from MRK. The reality is that with increased guidance on EPS, investors have more reasons to invest. Not to mention the fact that the company is expected to spend less on marketing this year; freeing up more funds for R&D. All in all, things look great from both, the fundamental and technical viewpoints.
What Do You Think?
Where do you think MRK is headed and why? Let us know in the comments below!