Merck & Co. Inc. ($MRK) Stock | Soft Outlook Weighing On Shares


Merck & Co. Inc. (NYSE: MRK)



Merck & Co. Earnings

This morning before the market opened, Merck & Co. (MRK) announced earnings that beat estimates but revenues missed and then the company released a softer outlook than expected by analyst. MRK announced adjusted earnings of 93 cents per shares on $10.2 billion in sales while Wall Street was looking for 91 cents per share on $10.3 billion in sales. Outlook for 2016 was softer than expected with estimates from the company coming in at $38.7 – $40.2 billion while analysts had estimates in the $40.3 billion range.


The quarter’s pharmaceutical revenue fell 3.7% to $9.03 billion, including an 8% negative impact from currency fluctuations. Type 2 diabetes treatment Januvia posted a 12% sales decrease. Recently Januvia has faced an FDA safety alert about risk of joint pain for it and other drugs in its category. (MarketWatch) Look for shares of MRK to be under pressure today as this was not a good earnings release for them. Currently analysts have an average price target of $55.50, however, I wouldn’t be surprised to see some downgrades come out over the next couple of days.


MRK Technicals

MRK Chart

MRK took a hit this morning in the premarket session as shares dropped to lows of $48.56 and look to gap down nearly 2% from yesterdays close of $50.41. Shares of MRK have been under pressure as they have been in a downtrend dating back to last summer. Shares have been trending under the 200-day moving average that is currently sitting at $55.18 and with today’s earnings release shares will be pushed below the big $50 level. We should see some support come in at $48.09 and $45.69 while resistance will now be the $50 and $49.27. This stock will be in play today so expect increased volatility and volume.


Company Profile

Merck & Co., Inc. provides various health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products worldwide. It is a global research-driven pharmaceutical company that discovers, develops, manufactures and markets vaccines and medicines to address unmet medical needs. The company operates through the following segments: Pharmaceutical, Animal Health and Alliances. The Pharmaceutical segment includes human health pharmaceutical and vaccine products marketed either directly by the company or through joint ventures. Its human health pharmaceutical products consist of therapeutic and preventive agents, generally sold by prescription, for the treatment of human disorders. The company sells these products primarily to drug wholesalers and retailers, hospitals, government agencies and managed health care providers, such as health maintenance organizations, pharmacy benefit managers and other institutions. Its vaccine products consist of preventive pediatric, adolescent and adult vaccines, primarily administered at physician offices. The company sells these vaccines primarily to physicians, wholesalers, physician distributors and government entities. The Animal Health segment discovers, develops, manufactures and markets animal health products, including vaccines, which it sells to veterinarians, distributors and animal producers. The Alliances segment includes revenue from the company relationship with AstraZeneca LP. The company was founded in 1851 and is headquartered in Kenilworth, NJ. (MarketWatch)