Merck & Co., Inc. (NYSE:MRK) Releases Earnings Results, Misses Expectations By $0.13 EPS

Merck & Co., Inc. (NYSE:MRK) released its quarterly earnings data on Tuesday. The company reported $1.72 EPS for the quarter, missing analysts’ consensus estimates of $1.85 by ($0.13), Zacks reports. The firm had revenue of $15.62 billion during the quarter, compared to the consensus estimate of $15.51 billion. Merck & Co., Inc. had a net margin of 19.23% and a return on equity of 36.42%. Merck & Co., Inc.’s revenue was up 6.8% compared to the same quarter last year. During the same quarter last year, the business posted $0.03 earnings per share. Merck & Co., Inc. updated its FY 2025 guidance to 8.880-9.030 EPS and its FY25 guidance to $8.88 to $9.03 EPS.

Merck & Co., Inc. Stock Down 1.3 %

Shares of Merck & Co., Inc. stock opened at $89.52 on Thursday. The company has a 50-day simple moving average of $99.58 and a two-hundred day simple moving average of $107.12. The stock has a market capitalization of $226.46 billion, a PE ratio of 18.77, a price-to-earnings-growth ratio of 1.20 and a beta of 0.38. Merck & Co., Inc. has a 52-week low of $87.33 and a 52-week high of $134.63. The company has a debt-to-equity ratio of 0.79, a quick ratio of 1.15 and a current ratio of 1.36.

Merck & Co., Inc. Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, April 7th. Investors of record on Monday, March 17th will be paid a $0.81 dividend. This represents a $3.24 dividend on an annualized basis and a yield of 3.62%. The ex-dividend date is Monday, March 17th. Merck & Co., Inc.’s payout ratio is 67.92%.

Analyst Ratings Changes

Several research analysts have recently weighed in on the stock. Leerink Partners decreased their price target on shares of Merck & Co., Inc. from $136.00 to $119.00 and set an “outperform” rating on the stock in a report on Monday, January 13th. Sanford C. Bernstein assumed coverage on shares of Merck & Co., Inc. in a research report on Thursday, October 17th. They set a “market perform” rating and a $115.00 target price for the company. UBS Group reduced their price target on shares of Merck & Co., Inc. from $125.00 to $120.00 and set a “buy” rating on the stock in a research report on Wednesday, January 8th. Wolfe Research assumed coverage on shares of Merck & Co., Inc. in a research note on Friday, November 15th. They issued a “peer perform” rating for the company. Finally, Truist Financial reiterated a “hold” rating and issued a $110.00 target price (down previously from $130.00) on shares of Merck & Co., Inc. in a research report on Wednesday, January 8th. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating, nine have issued a buy rating and three have issued a strong buy rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $120.33.

Merck & Co., Inc. announced that its board has authorized a share repurchase plan on Tuesday, January 28th that permits the company to buyback $10.00 billion in shares. This buyback authorization permits the company to purchase up to 4.1% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s board believes its shares are undervalued.

Merck & Co., Inc. Company Profile

Merck & Co, Inc is a health care company, which engages in the provision of health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. It operates through the following segments: Pharmaceutical, Animal Health, and Other. The Pharmaceutical segment includes human health pharmaceutical and vaccine products.