Merck’s Q2 Profit Beats, but Revenue Falls Just Short (MRK)

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Drugmaker Merck & Co., Inc. ( MRK ) on Monday posted better-than expected adjusted second quarter profit, but its revenue fell short of analysts' view.

The Kenilworth, NJ-based company reported second quarter net income of $752.4 million, or 24 cents per share, compared with $1.56 billion, or 74 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 86 cents per share.

Revenue nearly doubled from last year, to $11.35 billion.

On average, Wall Street analysts expected a smaller profit of 83 cents per share, albeit on slightly higher revenue of $11.45 billion.

Looking ahead, the company narrowed its full-year forecast to a range of 82 cents to $1.16 per share, or $3.29 to $3.39 excluding items. Analysts currently expect $3.34 for the year on an adjusted basis.

Merck shares were mostly flat in premarket trading Monday.

The Bottom Line
Shares of MRK have a 4.41% dividend yield, based on Friday's closing stock price of $34.46. The stock has technical support in the $32 price area. If the shares can firm up, we see overhead resistance around the $38 price level. We would remain on the sidelines for now.

Merck & Co., Inc. ( MRK ) is not recommended at this time, holding a DARS™ Rating of 3.4 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 .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: MERCK , MRK

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