Health and Healthcare
Merck Visits The Proctologist (MRK)
Published:
Last Updated:
Merck & Co. (NYSE: MRK) posted earnings that look pretty good on the surface. The problem is that the surface is about the only thing that looked appealing for the drug giant today. Merck posted $0.86 EPS on a constant basis on $6.1 Billion in worldwide sales. First Call estimates were $0.83 EPS on $6.05 Billion in revenues.
To make matters worse, the company has opted not to give 2008 and long-term guidance on earnings and revenues to assess the effects of today’s Vytorin study data.
Vytorin sales were already down 14%, and now with today’s very cautious data it’s just hard to think much here that is positive. Its Gardasil cervical cancervaccine sales were down and it offered 2008 guidance of $1.4 to $1.6 Billionin global Gardasil sales. Fosamax sales were also down and it gaveguidance for 2008 at $1.4 to $1.7 Billion for that franchise. Merckalso noted that its pre-tax expenses for restructuring will run $220 to$300 million for 2008. As far as the rest, it just doesn’t reallymatter for now. The damage has been done.
Shares had closed down over 6% at $35.33 today in regular trading andshares are down another 8% at $32.50 in after-hours trading. Its52-week trading range was $34.49 to $61.62.
For some reason this feels like being the proctologist for the traveling circus, and you keep getting the Siamese twins revisiting every day.
Jon C. Ogg
July 21, 2008
If you missed out on NVIDIA’s historic run, your chance to see life-changing profits from AI isn’t over.
The 24/7 Wall Street Analyst who first called NVIDIA’s AI-fueled rise in 2009 just published a brand-new research report named “The Next NVIDIA.”
Click here to download your FREE copy.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.