Merck (NYSE: MRK ) is expected to report Q4 earnings around Feb. 1. 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 contract -6.8% and EPS will wither -16.5%.
The average estimate for revenue is $11.46 billion. On the bottom line, the average EPS estimate is $0.81.
Last quarter, Merck notched revenue of $11.49 billion. GAAP reported sales were 4.4% lower than the prior-year quarter's $12.02 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $0.95. GAAP EPS of $0.56 for Q3 were 1.8% higher than the prior-year quarter's $0.55 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 64.5%, 10 basis points worse than the prior-year quarter. Operating margin was 21.7%, 10 basis points better than the prior-year quarter. Net margin was 15.1%, 100 basis points better than the prior-year quarter.
The full year's average estimate for revenue is $47.00 billion. The average EPS estimate is $3.80.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,689 members out of 2,897 rating the stock outperform, and 208 members rating it underperform. Among 772 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 733 give Merck a green thumbs-up, and 39 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 $46.14.
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