Merck (NYS: MRK) reported earnings on July 27. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Merck beat slightly on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share contracted.
Gross margins increased, operating margins expanded, and net margins dropped.
Merck logged revenue of $12.31 billion. The 17 analysts polled by S&P Capital IQ foresaw revenue of $12.15 billion on the same basis. GAAP reported sales were 1.3% higher than the prior-year quarter's $12.15 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.05. The 19 earnings estimates compiled by S&P Capital IQ predicted $1.02 per share. GAAP EPS of $0.58 for Q2 were 11% lower than the prior-year quarter's $0.65 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 67.3%, 70 basis points better than the prior-year quarter. Operating margin was 24.3%, 150 basis points better than the prior-year quarter. Net margin was 14.6%, 210 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $11.72 billion. On the bottom line, the average EPS estimate is $0.94.
Next year's average estimate for revenue is $47.18 billion. The average EPS estimate is $3.82.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,695 members out of 2,903 rating the stock outperform, and 208 members rating it underperform. Among 763 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 723 give Merck a green thumbs-up, and 40 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Merck is outperform, with an average price target of $41.93.
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The article Merck Beats on Both Top and Bottom Lines originally appeared on Fool.com.
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