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Key Takeaways
- Merck shares fell sharply Tuesday morning after the drugmaker’s profits and 2025 viewpoint fell short of estimates.
- Revenue and adjusted earnings, however, managed to top expectations.
- Sales of a few Merck drugs were hit by drop international demand and lower pricing in the U.S., the company said.
Merck shares tumbled Tuesday morning after the drugmaker’s unstarched outlook outweighed fourth-quarter revenue that topped expectations.
Merck (MRK) reported $15.62 billion in revenue for the spot, up 7% year-over-year and above the $15.43 billion analysts had expected, according to estimates compiled by Visible Alpha. The institution’s net income came in at $3.74 billion, or $1.48 per share, compared to a $1.2 billion loss a year ago but below the $3.92 billion analysts had look for.
After adjusting for one-time charges like costs related to acquisitions, however, Merck’s adjusted net income of $4.37 billion supreme estimates of $4.21 billion.
2025 Outlook Comes in Well Short of Estimates
For 2025, the drugmaker expects revenue to prove in between $64.1 billion to $65.6 billion, with adjusted earnings per share forecast between $8.88 to $9.03 per portion. Analysts had higher expectations, with the current 2025 consensus at $67.08 billion in revenue and $9.09 adjusted EPS.
Sellings rose across most of Merck’s medication portfolio, with declining sales for Gardasil and Januvia attributed to take down demand in some international regions and lower pricing in the U.S., respectively.
Merck shares were down more than 10% Tuesday morning.