Merck (MRK) Stock Gains on Beat-and-Raise, Sees Up To $7 Billion in Sales of COVID-19 Drug, Analysts Bullish
- Stocks tumble on new coronavirus variant fear
- Moderna (MRNA) Shares Rally 11% on 'Nu' Concerns, Analyst Sees mRNA Technology Adapting Much Quicker to New COVID Variant
- DiDi (DIDI) Stock Falls on Report China Seeks Delisting From US Amid Data Security Concerns
- Apple (AAPL) on Pace to Sell Over 10 Million iPhones for Black Friday - Wedbush
- Buy Tech Winners on Variant Fears - Wedbush
Get inside Wall Street with StreetInsider Premium. Claim your 1-week free trial here.
Shares of Merck (NYSE: MRK) are up 1.5% in pre-open Thursday after the biotech company delivered better-than-expected Q3 results.
Merck said it earned $1.75 per share to top the analyst estimate of $1.55. Revenue for the quarter came in at $13.2 billion versus the consensus estimate of $12.33 billion.
“Merck delivered another strong quarter with positive momentum across our business and meaningful progress across our pipeline. Our teams continued to excel as we focus on evolving our operations, while driving innovations in our labs that exemplify the best of Merck science,” said Robert M. Davis, chief executive officer and president, Merck.
The company also raised and narrowed its FY21 guidance. MRK is now calling for EPS of $5.65 to $5.70 (below the consensus of $5.77) on sales of $47.4 billion to $47.9 billion (lower than the consensus of $48.16 billion).
Mizuho analyst Mara Goldstein reiterated a Buy rating and a $100.00 per share price target on a strong beat and raised guidance. Merck’s outlook does not reflect sales of molnupiravir, which is incorporated in Mizho’s model and what could help the company beat the Q4 estimates (if the EUA granted).
The company said it is seeking to generate between $5 billion and $7 billion from sales of its experimental COVID-19 drug through the end of next year, including $1 billion this year if the EUA is granted).
“3Q21 EPS report delivered a top-line beat versus Mizuho estimates and Bloomberg consensus, driven by strong sales of KEYTRUDA, GARDASIL, and in animal health,” Goldstein briefly commented.
Cantor Fitzgerald analyst Louise Chen maintained an Overweight rating and a $107.00 per share price target.
“The underlying sales for MRK's key products underscores that growth across oncology, vaccines and animal health, as well as margin expansion opportunities, remain underappreciated, in our view. Therefore, multiple expansion should drive MRK shares higher as earnings visibility improves beyond Keytruda's patent cliff in 2028+,” the analyst said in a client note.
Shares closed at $81.54 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- 'Rack Gets Racked': Nordstrom (JWN) Shares Crash 27% After Disappointing Results, Jefferies Downgrades to Hold
- Kingsoft Cloud Holdings Limited (KC) Tops Q3 EPS by 18c; Offers Guidance
- Deere (DE) Upside Likely to Carry Into 2023 - BofA Securities
Create E-mail Alert Related CategoriesAnalyst Comments, Earnings, Guidance
Related EntitiesCantor Fitzgerald, Earnings, Louise Chen, Mara Goldstein, Pre Market Movers
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!