Drug maker Merck & Co. Inc. (NYSE: MRK) this morning lowered its first quarter non-GAAP EPS estimate to $0.95-$0.98, well below the previous consensus estimate of $1.03. For the full-year, Merck expects non-GAAP EPS of $3.75-$3.85, compared with a consensus estimate of $3.81.
The company also said that 2012 revenues “to be at or near 2011 levels on a constant currency basis. At current exchange rates, sales would be unfavorably affected by about 2 to 3 percent.” Merck’s calculations are based on an exchange rate of $1.31/euro.
The euro/dollar exchange rate is also expected to have a negative impact of -1% to -2% on first quarter earnings. Full-year sales are expected to get whacked by -2% to -3% as a result of the euro/dollar exchange rate.
Merck’s shares are down more than -1% in the pre-market, at $38.02 in a 52-week range of $29.47-$39.43.
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