Merck, in the Spotlight Soon

Seth Jayson, The Motley Fool
Updated

Merck (NYS: MRK) is expected to report Q3 earnings around Oct. 25. Here's what Wall Street wants to see:

The 10-second takeaway
 Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Merck's revenues will decrease -3.7% and EPS will wither -2.1%.

The average estimate for revenue is $11.58 billion. On the bottom line, the average EPS estimate is $0.92.


Revenue details
 Last quarter, Merck reported revenue of $12.31 billion. 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 details
 Last quarter, non-GAAP EPS came in at $1.05. 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.

Recent performance
 For the preceding quarter, gross margin was 67.3%, 70 basis points better than the prior-year quarter. Operating margin was 25.4%, 260 basis points better than the prior-year quarter. Net margin was 14.6%, 210 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $47.21 billion. The average EPS estimate is $3.81.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,681 members out of 2,886 rating the stock outperform, and 205 members rating it underperform. Among 762 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 724 give Merck a green thumbs-up, and 38 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.

Can your portfolio provide you with enough income to last through retirement? You'll need more than Merck. Learn how to maximize your investment income and get "The 3 DOW Stocks Dividend Investors Need." Click here for instant access to this free report.

The article Merck, in the Spotlight Soon originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement