Drugmaker Merck & Co., Inc. (
) on Friday posted a sharp uptick in second quarter profits,
meeting analyst estimates, and announced a new round of impending
The Whitehouse Station, NJ-based company reported second quarter
net income $2.02 billion, or 65 cents per share, compared with $752
million, or 24 cents per share, in the year-ago period. Excluding
special items, adjusted profit was 95 cents per share.
Net sales rose 7% from last year to $12.15 billion.
On average, Wall Street analysts expected a matching profit of
95 cents per share, on lower revenue of $11.78 billion.
Looking ahead, Merck boosted the low-end of its 2011 earnings
forecast. It now expects adjusted results of $3.68 to $3.76 per
share, while analysts are looking for $3.74.
The company also unveiled plans to cut 12% to 13% of its
workforce by the end of 2015 as part of ongoing restructuring
Merck shares fell 43 cents, or -1.2%, in premarket trading
The Bottom Line
Shares of Merck (
) have a 4.35% dividend yield, based on Friday's closing stock
price of $34.93. The stock has technical support in the $31-$32
price area. If the shares can firm up, we see overhead resistance
around the $36-$38 price levels.
Merck & Co., Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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