Merck & Co., Inc. (NYSE:MRK) Releases Quarterly Earnings Results, Misses Expectations By $0.13 EPS

Merck & Co., Inc. (NYSE:MRK) posted its earnings results on Tuesday. The company reported $1.72 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.85 by ($0.13), Zacks reports. The firm had revenue of $15.62 billion during the quarter, compared to the consensus estimate of $15.51 billion. Merck & Co., Inc. had a net margin of 19.23% and a return on equity of 36.42%. The business’s revenue was up 6.8% on a year-over-year basis. During the same quarter last year, the firm posted $0.03 EPS. Merck & Co., Inc. updated its FY 2025 guidance to 8.880-9.030 EPS and its FY25 guidance to $8.88 to $9.03 EPS.

Merck & Co., Inc. Price Performance

MRK opened at $90.99 on Wednesday. The stock has a market cap of $230.16 billion, a P/E ratio of 19.07, a P/E/G ratio of 1.20 and a beta of 0.38. Merck & Co., Inc. has a 12 month low of $87.33 and a 12 month high of $134.63. The company has a quick ratio of 1.15, a current ratio of 1.36 and a debt-to-equity ratio of 0.79. The company has a fifty day simple moving average of $99.80 and a 200 day simple moving average of $107.37.

Merck & Co., Inc. Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, April 7th. Shareholders of record on Monday, March 17th will be paid a $0.81 dividend. This represents a $3.24 annualized dividend and a yield of 3.56%. The ex-dividend date of this dividend is Monday, March 17th. Merck & Co., Inc.’s payout ratio is presently 67.92%.

Wall Street Analysts Forecast Growth

MRK has been the subject of several research analyst reports. HSBC upgraded Merck & Co., Inc. from a “hold” rating to a “buy” rating and set a $130.00 price objective for the company in a research report on Wednesday, December 4th. Daiwa Capital Markets downgraded shares of Merck & Co., Inc. from a “buy” rating to a “neutral” rating in a research report on Monday, November 11th. Sanford C. Bernstein began coverage on shares of Merck & Co., Inc. in a research report on Thursday, October 17th. They issued a “market perform” rating and a $115.00 price objective for the company. Wolfe Research initiated coverage on shares of Merck & Co., Inc. in a research report on Friday, November 15th. They set a “peer perform” rating on the stock. Finally, Truist Financial reissued a “hold” rating and issued a $110.00 price target (down previously from $130.00) on shares of Merck & Co., Inc. in a report on Wednesday, January 8th. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating, nine have assigned a buy rating and three have given a strong buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $122.67.

Merck & Co., Inc. declared that its Board of Directors has initiated a stock repurchase plan on Tuesday, January 28th that permits the company to repurchase $10.00 billion in shares. This repurchase authorization permits the company to buy up to 4.1% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s leadership believes its shares are undervalued.

About Merck & Co., Inc.

Merck & Co, Inc is a health care company, which engages in the provision of health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. It operates through the following segments: Pharmaceutical, Animal Health, and Other. The Pharmaceutical segment includes human health pharmaceutical and vaccine products.