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Merck Second Quarter Earnings
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MRK
Merck (NYSE:MRK) announced its results for the most recent quarter on July 27, 2012. Merck is a global research-driven company that develops and manufactures a range of innovative pharmaceutical products to improve human and animal health.
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: Surprising Earnings Results
The Numbers: Merck beat expectations with its latest EPS and revenue figures. The company reported adjusted net income of $1.05 per share versus the $1.01 per share estimate and revenues of $12.31 billion versus the $12.17 billion estimate. Revenue climbed 1.3% from the same period last year. Merck's revenue has grown during each of the past four quarters on a year-over-year basis. The company's net income for the quarter fell 11.4% to $1.79 billion.
Management Quote: "This quarter we delivered strong operational performance by focusing on growth and execution. We achieved top- and bottom-line growth by advancing our core strategy and maintaining momentum across our businesses," said Kenneth C. Frazier, chairman and chief executive officer of Merck. "The company remains focused on translating cutting-edge science into medically important products. We're seeing significant progress in the pipeline this year, and we expect six major filings over the next 18 months, including suvorexant for insomnia and odanacatib for osteoporosis. This focus on innovation and execution will drive long-term shareholder value."
A Look Back: Last quarter marked the fifth consecutive quarter of increasing gross margins, as the company's gross margin expanded 1.9 percentage points from the year-earlier quarter to 66.6%. During this time, margins have grown an average of 2.3 percentage points per quarter on a year-over-year basis.
Looking Ahead: For next quarter, analysts have a more positive outlook about the company's expected results. The average estimate for the third quarter is 96 cents per share, up from 93 cents 90 days ago. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. For the fiscal year, the average estimate has moved up from $3.80 a share to $3.83 over the last ninety days.
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: Surprising Earnings Results
The Numbers: Merck beat expectations with its latest EPS and revenue figures. The company reported adjusted net income of $1.05 per share versus the $1.01 per share estimate and revenues of $12.31 billion versus the $12.17 billion estimate. Revenue climbed 1.3% from the same period last year. Merck's revenue has grown during each of the past four quarters on a year-over-year basis. The company's net income for the quarter fell 11.4% to $1.79 billion.
Management Quote: "This quarter we delivered strong operational performance by focusing on growth and execution. We achieved top- and bottom-line growth by advancing our core strategy and maintaining momentum across our businesses," said Kenneth C. Frazier, chairman and chief executive officer of Merck. "The company remains focused on translating cutting-edge science into medically important products. We're seeing significant progress in the pipeline this year, and we expect six major filings over the next 18 months, including suvorexant for insomnia and odanacatib for osteoporosis. This focus on innovation and execution will drive long-term shareholder value."
A Look Back: Last quarter marked the fifth consecutive quarter of increasing gross margins, as the company's gross margin expanded 1.9 percentage points from the year-earlier quarter to 66.6%. During this time, margins have grown an average of 2.3 percentage points per quarter on a year-over-year basis.
Looking Ahead: For next quarter, analysts have a more positive outlook about the company's expected results. The average estimate for the third quarter is 96 cents per share, up from 93 cents 90 days ago. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. For the fiscal year, the average estimate has moved up from $3.80 a share to $3.83 over the last ninety days.
by
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