Merck Reports Mixed Earnings, Guidance Disappoints
Key Points:
* Merck (MRK) reported Q4 and full-year earnings in line with estimates.
* Sales increased 7% to $64.2 billion for 2024, near consensus.
* EPS reached $7.65, slightly above Wall Street's forecast.
* 2025 guidance of $64.1-$65.6 billion in revenue underwhelmed investors, leading to a 10.86% stock decline.
* Concerns raised about Merck's product pipeline and long-term strategy.
* Keytruda sales rose 18% in 2024 to $29.5 billion.
* Gardasil sales declined 2% to $8.6 billion, impacted by weaker China demand.
* Gardasil's recent expansion to men and shipments resuming in China expected to boost future sales.
* Comparisons to Pfizer (PFE) suggest both stocks as undervalued with long-term potential.