What to Expect From Merck and Pfizer Earnings

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By Chris Lange Updated Published
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Pharmaceutical giants Merck & Co. Inc. (NYSE: MRK) and Pfizer Inc. (NYSE: PFE) are both releasing their first quarter financial results Tuesday before the markets open. Each of these companies is a leader in the health care sector which has had a strong year so far.

Comparatively Merck has a market cap of roughly $162 billion while Pfizer has a market cap of $213 billion. So far on the year, Merck shares have gained 2.3% and Pfizer shares have gained over 14%.

Merck has consensus estimates from Thomson Reuters of $0.74 in earnings per share (EPS) on $8.99 billion in revenue. The same period from last year had $0.88 in EPS on $10.26 billion in revenue.

This stock has been hit hard since printing a high in late January, and it may be offering new investors a very good entry point. It also remains a leading healthcare company that is on the focus lists of many top analyst firms. The company’s numerous prescription medicines, vaccines, biologic therapies and consumer care and animal health products are provided to customers in more than 140 countries.

Shares of Merck traded down 0.9% at $57.09. The stock has a consensus analyst price target of $63.85 and a 52-week trading range of $52.49 to $63.62.

Pfizer has consensus estimates of $0.49 in EPS on $10.73 billion in revenue. The first quarter from the previous year had $0.57 in EPS on $11.30 billion in revenue.

The pharmaceutical giant is the fifth-best Dow gainer so far this year at 14.5%, while rival Merck is up less than 3%. Many investors are operating under the premise that Pfizer is on the path to break up into two, or maybe even into three, companies. Its 3.2% yield also remains a draw. Still, patent cliffs are a constant challenge, and they are forcing Pfizer and other drug giants to look for opportunities in emerging pharma, biotech and internationally.

Shares of Pfizer were down 1.6% at $34.71. The stock has a consensus analyst price target of $36.60 and a 52-week trading range of $27.51 to $35.53.

ALSO READ: 4 Biotech and Pharma Stocks Projected to Rise 50% to 100%

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.

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