Merck & Co. Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Merck & Co., Inc. (NYSE:MRK) will unveil its latest earnings on Friday, October 28, 2011. Merck is a global research-driven company that develops and manufactures a range of innovative pharmaceutical products to improve human and animal health.

Merck & Co., Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 91 cents per share, a rise of 7.1% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate moved down. It has risen from 90 cents during the last month. Analysts are projecting profit to rise by 9.1% versus last year to $3.73.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the second quarter, the company reported profit of 95 cents per share versus a mean estimate of net income of 95 cents per share. In the first quarter, the company beat estimates by 8 cents.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 4.4% in revenue from the year-earlier quarter to $11.61 billion.

Analyst Ratings: Analysts are bullish on this stock with 14 analysts rating it as a buy, none rating it as a sell and four rating it as a hold.

A Look Back: In the second quarter, profit rose more than twofold to $2.02 billion (65 cents a share) from $752.4 million (24 cents a share) the year earlier, meeting analyst expectations. Revenue rose 7.1% to $12.15 billion from $11.35 billion.

Key Stats:

Revenue has risen the past four quarters. Revenue rose 1.4% in the first quarter from the year earlier, climbed 19.8% in the fourth quarter of the last fiscal year from the year-ago quarter and 83.9% in the third quarter of the last fiscal year.

Competitors to Watch: Johnson & Johnson (NYSE:JNJ), Pfizer Inc. (NYSE:PFE), Bristol Myers Squibb Co. (NYSE:BMY), GlaxoSmithKline plc (NYSE:GSK), Sanofi-Aventis SA (NYSE:SNY), Roche Holding Ltd. (RHHBY), Eli Lilly & Co. (NYSE:LLY), Abbott Laboratories (NYSE:ABT), Teva Pharmaceutical Industries Ltd (NASDAQ:TEVA), and Novartis AG (NYSE:NVS).

Stock Price Performance: During August 26, 2011 to October 24, 2011, the stock price had risen $1.99 (6.3%) from $31.54 to $33.53. The stock price saw one of its best stretches over the last year between April 21, 2011 and May 4, 2011 when shares rose for nine-straight days, rising 7.4% (+$2.46) over that span. It saw one of its worst periods between July 21, 2011 and August 4, 2011 when shares fell for 11-straight days, falling 12.9% (-$4.61) over that span. Shares are down $1.29 (-3.7%) year to date.

(Source: Xignite Financials)

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