3 Stocks Investors are Analyzing After Earnings Reports

Merck & Co., Inc. (NYSE:MRK) reported its results for the fourth quarter. Merck delivered a net income of 97 cents per share. By that measure, the company beat the mean estimate of 95 cents per share. Analysts were expecting revenue of $12.53 billion.

“We are positioning Merck to perform well by advancing and growing our innovative pipeline, meeting the evolving needs of customers around the world and achieving a more efficient operating model,” said Kenneth C. Frazier, chairman and chief executive officer of Merck.

Competitors to Watch: Johnson & Johnson (NYSE:JNJ), Pfizer Inc. (NYSE:PFE), Eli Lilly & Co. (NYSE:LLY), Abbott Laboratories (NYSE:ABT), Teva Pharmaceutical Industries Ltd (NASDAQ:TEVA), and Novartis AG (NYSE:NVS).

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) reported its results for the fourth quarter. Reported a profit of $158.6 million (74 cents per diluted share) in the quarter. Vertex Pharmaceuticals Incorporated had a net loss of $180.4 million or a loss 90 cents per share in the year earlier quarter. Revenue rose 759.7% to $563.3 million from the year earlier quarter. Vertex Pharmaceuticals Incorporated reported adjusted net income of 86 cents per share. By that measure, the company beat the mean estimate of 82 cents per share. It beat the average revenue estimate of $527.4 million.

“The successful launch of INCIVEK in hepatitis C and rapid approval of KALYDECO for people with a specific type of cystic fibrosis underscore our ability to discover and develop breakthrough new medicines and to bring them to patients,” said Jeffrey Leiden, M.D., Ph.D., President and Chief Executive Officer of Vertex. “We will continue to advance our pipeline of eight other potential medicines and expect to generate proof-of-concept data for many of these programs throughout 2012. With two approved medicines and a diverse pipeline, Vertex is well-positioned to become a global business focused on creating additional medicines for people with serious diseases.”

Competitors to Watch: Merck & Co., Inc. (NYSE:MRK), Johnson & Johnson (NYSE:JNJ), GlaxoSmithKline plc (NYSE:GSK), InterMune, Inc. (NASDAQ:ITMN), Gilead Sciences, Inc. (NASDAQ:GILD), Pharmasset, Inc. (NASDAQ:VRUS), Idenix Pharmaceuticals, Inc. (NASDAQ:IDIX), Bristol Myers Squibb Co. (NYSE:BMY), Abbott Laboratories (NYSE:ABT), and Human Genome Sciences (NASDAQ:HGSI).

Allergan Inc.  (NYSE:AGN) reported its results for the fourth quarter. Net income for the drug manufacturer rose to $279.8 million (90 cents per share) vs. $263.1 million (87 cents per share) in the same quarter a year earlier. This marks a rise of 6.3% from the year earlier quarter. Revenue rose 7.1% to $1.4 billion from the year earlier quarter. Allergan Inc. reported adjusted net income of $1 per share. By that measure, the company beat the mean estimate of 99 cents per share. Analysts were expecting revenue of $1.41 billion.

“We are very pleased with our fourth quarter and full year growth of sales and profits, as well as the significant regulatory approvals received in 2010 and 2011,” said David E.I. Pyott, Allergan’s Chairman of the Board, President and Chief Executive Officer. “In 2012, we look forward to building on the momentum gained from the regulatory approvals, and increased investment in R&D to further strengthen our pipeline.”

Competitors to Watch: Johnson & Johnson (NYSE:JNJ), Inspire Pharmaceuticals, Inc. (NASDAQ:ISPH), ISTA Pharmaceuticals, Inc. (NASDAQ:ISTA), Endo Pharmaceuticals (NASDAQ:ENDP), Medicis Pharmaceutical Corp. (NYSE:MRX), Akorn, Inc. (NASDAQ:AKRX), Novartis AG (NYSE:NVS), GlaxoSmithKline plc (NYSE:GSK), Merck & Co., Inc. (NYSE:MRK), and Hospira, Inc. (NYSE:HSP).

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com