Merck (NYSE: MRK) is expected to report Q3 earnings around Oct. 25. Here's what Wall Street wants to see:

The 10-second takeaway
 Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Merck's revenues will decrease -3.7% and EPS will wither -2.1%.

The average estimate for revenue is $11.58 billion. On the bottom line, the average EPS estimate is $0.92.

Revenue details
 Last quarter, Merck reported revenue of $12.31 billion. GAAP reported sales were 1.3% higher than the prior-year quarter's $12.15 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 Last quarter, non-GAAP EPS came in at $1.05. GAAP EPS of $0.58 for Q2 were 11% lower than the prior-year quarter's $0.65 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
 For the preceding quarter, gross margin was 67.3%, 70 basis points better than the prior-year quarter. Operating margin was 25.4%, 260 basis points better than the prior-year quarter. Net margin was 14.6%, 210 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $47.21 billion. The average EPS estimate is $3.81.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,681 members out of 2,886 rating the stock outperform, and 205 members rating it underperform. Among 762 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 724 give Merck a green thumbs-up, and 38 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Merck is outperform, with an average price target of $41.93.

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