Merck (MRK) Stock Drops 10% After Mixed Earnings Report
Merck's stock (NYSE: MRK) plunged 11% during morning trading following the release of mixed fourth-quarter earnings. The company's full-year revenue and EPS guidance fell short of estimates.
Merck attributed the decline to increased competition and waning demand in China. Despite these headwinds, Merck exceeded analysts' constant currency revenue expectations and outperformed EPS estimates.
Market Reaction
Merck's stock has historically been stable, but this 10% drop indicates the market's significant response to the earnings report. The stock has declined further since the beginning of the year, trading at $89.28 per share, 32.9% below its 52-week high.
Investment Implications
Investors should note that Merck's stock is currently undervalued relative to its recent highs. However, the company faces challenges due to competition and weak demand.
Analyst Recommendation
For further analysis and insights on Merck and the broader healthcare sector, access our free report by clicking here.