Earnings Preview: Merck

Jul.26.12 | About: Merck & (MRK)

Merck (NYSE:MRK) is expected to report Q2 earnings after the market close on Friday, July 27 with a conference call scheduled for 8:00 am ET.

Guidance

Analysts are looking for EPS of $1.01 on revenue of $12.16B. The consensus range is 96c-$1.05 for EPS, and $11.91B-$12.62B for revenue, according to First Call. After reporting slightly better-than-expected Q1 EPS and missing revenue estimates, the company expected FY12 EPS to be in the range of $3.75-$3.85. It also reported strong sales for Singulair, Januvia, Zetia, and Animal Health. Merck continues to see 2012 revenue to be close to 2011 levels, but with Q2 results as its strongest during the year. Investors will look for more updates and sales numbers on their major drugs as well as clinical trial updates for suvorexant and odanacatib. The company will also likely address Singulair's sales when its patent expires and multiple generic versions of the drug will hit drugstores.

Analyst Views

Merck was upgraded to Buy at Citigroup and its price target was raised at Leerink, citing positive feedback on odanacatib.