Earnings Preview: Merck

Jul.28.11 | About: Merck & (MRK)

Merck (NYSE:MRK) is expected to report Q2 earnings on Friday, July 29 before the market open with a conference call scheduled for 8:00am ET.


Analysts are looking for EPS of 95c on revenue of $11.78B. The consensus range is 89c-$1.00 for EPS, and $11.44B-$12.21B for revenue, according to First Call. Positive revenue catalysts can be seen coming from the emerging markets in Q2 as the company is targeting 25% of sales from emerging markets by 2013. Additionally the company may see strong growth from Simponi as well as in Singulair and Januvia. Negatives for the quarter may be seen coming from continued patent erosion and a difficult pricing environment from U.S. healthcare reform.

Analyst Views

In mid-May Citigroup raised Merck's target price to $37 from $34 citing Victrelis receiving FDA approval with a broad label. The firm kept a Hold rating on the stock.