Drug maker Merck & Co., Inc. (
) on Friday said its third quarter profit plummeted 90% from last
year, hurt by one-time charges related to its recent acquisition of
The Whitehouse Station, NJ-based company reported third quarter
net income of $341.6 million, or 11 cents per share, compared with
$3.42 billion, or $1.61 per share, in the year-ago period.
Excluding $2.3 billion in one-time charges, adjusted profit was 85
cents per share.
Revenue surged 84% from last year to $11.12 billion, aided by
additional revenue from Schering-Plough.
On average, Wall Street analysts expected a smaller adjusted
profit of 82 cents per share, albeit on higher revenue of $11.24
Looking ahead, the company boosted the low-end of its
previously-announced full-year earnings guidance. Merck now expects
adjusted 2010 earnings of $3.31 to $3.39 per share, while analysts
expect $3.36 per share for the year.
Merck shares fell 29 cents, or -0.8%, in premarket trading
The Bottom Line
Shares of Merck (
) have a 4.11% dividend yield, based on last night's closing stock
price of $36.94. The stock has technical support in the $32-$34
price area. If the shares can firm up, we see overhead resistance
around the $38-$41 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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