Merck Earnings Preview: Can This Streak Continue?

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Merck & Co. (NYSE:MRK) will report earnings before markets open on Wednesday, May 1st. Merck & Co., Inc. is a global pharmaceutical company that discovers, develops, manufactures, and markets a broad range of human and animal health products. Merck’s products include a treatment for elevated cholesterol, a treatment for male pattern hair loss, a preventive treatment for osteoporosis, a treatment for hypertension, and a treatment for allergic rhinitis.

Here is your Cheat Sheet to Merck & Co. Earnings:

Earnings Expectations: Analysts expect earnings of $0.78 per share on revenues of $11.10 billion. Currently, the company’s P/E ratio stands at 23.98.

Analyst Trends:

Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.93 to a profit $0.92. For the current year, the average estimate is a profit of $3.63, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Merck & Co. has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 23,850 27,430 45,990 48,050 47,270
Diluted EPS ($) 3.63 5.65 0.28 2.02 2.00

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Dec. 31, 2011 Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012
Revenue ($) in millions 12,290 11,730 12,310 11,490 11,740
Diluted EPS ($) 0.4925 0.56 0.58 0.56 0.2952

Past Performance:
Merck & Co. has beat analyst estimates 4 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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