Drugmaker Merck & Co., Inc. (
) on Tuesday said its first quarter profit plunged substantially
from last year, weighed down by acquisition costs, but adjusted
results easily beat analysts' view as revenue doubled.
The Kenilworth, NJ-based company reported first quarter net
income of $298.8 million, or 9 cents per share, compared with $1.43
billion, or 67 cents per share, in the year-ago period. Excluding
one-time costs tied its its recent $41 billion acquisition of
Schering-Plough Corp., however, adjusted profit was 83 cents per
share in the quarter.
Revenue more than doubled from last year to $11.42 billion.
On average, Wall Street analysts expected a smaller adjusted
profit of 75 cents per share, on lower revenue of $11.18
Merck said it's still on track to meet its annual savings goal
of $3.85 billion in 2012. Those savings will stem from the
Looking ahead, the company forecast adjusted full-year 2010
earnings of $3.27 to $3.41 per share, on around $46 billion in
revenue. Analysts currently expect $3.41 per share and $45.83
billion in revenue for the year.
Merck shares rose 48 cents, or +1.4%, in premarket trading
The Bottom Line
We have been recommending shares of MRK since Dec.1, when the stock
was trading at $36.21. The company has a 4.31% dividend yield,
based on last night's closing stock price of $35.27.
Merck & Co., Inc. (
) is a "recommended" dividend stock, holding a Dividend.com DARS™
Rating of 3.5 out of 5 stars.
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
our ratings system here
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