Merck Beats on Both Top and Bottom Lines
Merck (NYS: MRK) filed its 10-K on Feb. 28. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Merck beat expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share shrank. GAAP earnings per share dropped significantly.
Margins dropped across the board.
Merck booked revenue of $11.74 billion. The 14 analysts polled by S&P Capital IQ predicted revenue of $11.46 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.83. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.81 per share. Non-GAAP EPS of $0.83 for Q4 were 14% lower than the prior-year quarter's $0.97 per share. GAAP EPS of $0.29 for Q4 were 41% lower than the prior-year quarter's $0.49 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 64.9%, 240 basis points worse than the prior-year quarter. Operating margin was 19.7%, 400 basis points worse than the prior-year quarter. Net margin was 7.7%, 460 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $11.12 billion. On the bottom line, the average EPS estimate is $0.81.
Next year's average estimate for revenue is $46.25 billion. The average EPS estimate is $3.65.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,690 members out of 2,901 rating the stock outperform, and 211 members rating it underperform. Among 755 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 718 give Merck a green thumbs-up, and 37 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 $47.93.
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The article Merck Beats on Both Top and Bottom Lines 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 position in any of the stocks mentioned. 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.
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