Merck Q4 and FY2024 Earnings Report Misses Expectations, Shares Fall
Merck & Co. (MRK) released its Q4 and FY2024 earnings on Tuesday, meeting Wall Street estimates overall. However, its stock dropped over 8% in pre-market trading due to disappointing guidance for 2025.
Key Financial Metrics
* Q4 Revenue: $15.6 billion, up 7% YoY
* Q4 EPS: $7.65, slightly above consensus estimate of $7.56
* FY2024 Revenue: $64.2 billion, up 7% YoY
* FY2024 EPS: $7.65, near Wall Street consensus of $7.56
2025 Outlook Disappoints
Merck's 2025 guidance of $64.1-$65.6 billion in revenue fell short of investor expectations. This lackluster outlook has raised concerns about the company's pipeline and competitive landscape.
Analyst Commentary
Analysts have expressed mixed feelings about Merck's recent performance. Some have questioned the company's ability to maintain a robust product pipeline despite patent expirations. Other analysts have highlighted the potential upside in Merck's long-term growth prospects.
Key Products and Market Trends
* Gardasil: HPV vaccine faces challenges in China, a key market for Merck.
* Keytruda: Cancer drug faces patent expiry in 2028.
* 2024 Sales: Keytruda grew 18%, Gardasil declined 2%.
Comparison with Pfizer
Analysts compared Merck's performance to Pfizer (PFE), which also reported earnings on Tuesday. Both stocks are considered undervalued with positive long-term potential.