Merck Reports Mixed Earnings, Guidance Disappoints
Merck (MRK) released its fourth-quarter and full-year financial results, meeting analysts' expectations. However, its stock price dropped over 8% in pre-market trading due to weaker-than-anticipated 2025 guidance.
Q4 and Full-Year Revenue
* Q4 sales: $15.6 billion, a 7% increase year-over-year, exceeding Wall Street's estimate of $15.4 billion.
* Full-year 2024 sales: $64.2 billion, a 7% growth compared to 2023, in line with consensus estimates of $64 billion.
Earnings per Share
* Q4 EPS: $7.65, slightly above Wall Street's target of $7.56.
* Full-year EPS: Not specified in the article.
2025 Outlook
* Merck projects revenue between $64.1 billion and $65.6 billion for 2025, disappointing investors.
Analyst Concerns
* Analysts express concerns about Merck's lack of a robust product pipeline and competition from expiring patents.
* Jefferies analysts categorize Merck as being in "the penalty box," citing investor frustration over the company's long-term strategy.
Product Performance
* Keytruda, Merck's leading cancer drug, generated $29.5 billion in sales in 2024, an 18% increase.
* Gardasil, the HPV vaccine, contributed $8.6 billion, a 2% decline.
* Gardasil sales have been impacted by weaker demand in China and disruptions due to Trump's tariffs.
Conclusion
Merck's financial results were mixed, with positive Q4 performance offset by disappointing 2025 guidance. Analyst concerns about the company's long-term prospects have contributed to the stock's decline in pre-market trading. Investors should monitor the company's progress in addressing these concerns in the coming months.