Merck's Profit And Revenue Rise Above Expectations

Merck & Co. reported Friday second-quarter earnings that rose to $1.21 billion, or 43 cents a share, from $687 million, or 24 cents a share, in the same period a year ago. Excluding non-recurring acquisition and divestiture-related costs, adjusted earnings per share came to 93 cents, beating the FactSet consensus of 91 cents. Revenue rose to $9.84 billion from $9.79 billion, above the FactSet consensus of $9.78 billion, with pharmaceutical revenue increasing 2% and animal health revenue growing 7%. Sales of Merck's top selling drug, Januvia/Janumet, increased 2% to $1.63 billion, beating the FactSet consensus of $1.61 billion. Looking ahead, the drug maker expects 2016 revenue of $39.1 billion to $40.1 billion, surrounding the FactSet consensus of $39.49 billion. 2016 EPS is expected to be $3.67 to $3.77, compared with the FactSet consensus of $3.72. The stock, which was still inactive in premarket trade, has climbed 11% year to date, while the Dow Jones Industrial Average has gained 5.9%.