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One-Time Costs Weigh on Merck’s Q2 Results (MRK)
7/30/2010 8:57:00 AM
Drugmaker Merck & Co., Inc. ( MRK ) said Friday that its second quarter profit plunged 52% from last year, hurt by several one-time items, but adjusted profit beat analyst expectations.
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 $11.45 billion.
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 share.
Merck shares fell 71 cents, or -2%, in premarket trading Friday.
The Bottom Line
Merck & Co., Inc. ( MRK ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.