Merck (NYSE: MRK) reported earnings on Oct. 26. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Sep. 30 (Q3), Merck met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share expanded.

Gross margins dropped, operating margins shrank, net margins grew.

Revenue details
 Merck logged revenue of $11.49 billion. The 15 analysts polled by S&P Capital IQ anticipated sales of $11.58 billion on the same basis. 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.

EPS details
 EPS came in at $0.95. The 16 earnings estimates compiled by S&P Capital IQ forecast $0.92 per share. 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.

Margin details
 For the quarter, gross margin was 64.0%, 60 basis points worse than the prior-year quarter. Operating margin was 20.6%, 110 basis points worse than the prior-year quarter. Net margin was 15.1%, 100 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $11.59 billion. On the bottom line, the average EPS estimate is $0.84.

Next year's average estimate for revenue is $47.18 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 2,677 members out of 2,882 rating the stock outperform, and 205 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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