Drugmaker Merck & Co., Inc. (
) said Friday that its second quarter profit plunged 52% from last
year, hurt by several one-time items, but adjusted profit beat
The Kenilworth, NJ-based compared 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 multiple one-time items, however, adjusted profit was
a much-higher 86 cents per share, and revenue nearly doubled from
last year, to $11.35 billion.
On average, Wall Street analysts expected a smaller adjusted
profit of 83 cents per share, albeit on slightly higher revenue of
Looking ahead, the company forecast full-year earnings of 82
cents to $1.16 per share, or $3.29 to $3.39 on an adjusted basis.
Analysts currently expect a full-year adjusted profit of $3.37 per
Merck shares fell 71 cents, or -2%, in premarket trading
The Bottom Line
Shares of MRK have a 4.34% dividend yield, based on last night's
closing stock price of $35.06. The stock has technical support in
the $32-$33 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. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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