Merck & Co. Inc. (NYSE: MRK) has managed to beat its first-quarter earnings expectations, and handily at that. The drug giant and Dow Jones Industrial Average component reported earnings of $0.85 per share, versus the $0.75 expected by Thomson Reuters, and that is down from $0.88 EPS a year ago on an adjusted basis. Revenues also beat estimates, at $9.4 billion versus $9.1 billion expected, although this is down from $10.26 billion a year ago. Merck’s fiscal 2015 guidance is now $3.35 to $3.48 EPS, versus a prior guidance range of $3.32 to $3.47 EPS.

The drug giant sees annual sales of about $38.3 billion to $39.8 billion. Merck said that currencies had a negative effect of 5% against sales.

Merck said that its first-quarter results reflect sales growth in diabetes, vaccines, hospital acute care, oncology and animal health, but also sales declines in hepatitis C.

Merck’s first-quarter pharmaceutical sales fell by about 2% to $8.3 billion, but that was shown to include a 7% impact from currencies. Merck’s divestiture of its consumer care operations was partly offset by its Cubist acquisition. Some additional comments on drug sales were as follows:

• Singulair sales down 9% to $245 million
• Januvia/Janumet sales up 4% to $1.39 billion
• Zetia/Vytorin sales down 9% to $887 million
• Remicade sales down 17% to $501 million
• Animal Health sales up 2% to $829 million

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Merck Chairman and Chief Executive Officer Kenneth Frazier said:

Our strong performance this quarter demonstrates that our scientific and business strategies, together with our focused investments, are paying off. We remain focused on bringing forward the best scientific and medical innovations. By capitalizing on the exciting scientific and clinical opportunities that lie ahead, Merck is poised to play a major role in transforming health care for patients, as well as payers and shareholders.

Merck shares closed down 0.8% to $57.10 ahead of earnings, and shares were indicated up 4% at $59.60 or so in early trading indications on Tuesday. Its 52-week range is $52.49 to $63.62, and Merck’s consensus analyst price target is $63.85.

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