Merck & Co's Earnings Outlook
Merck & Co (NYSE:MRK) is set to give its latest quarterly earnings report on Tuesday, 2025-07-29. Here's what investors need to know before the announcement.
Analysts estimate that Merck & Co will report an earnings per share (EPS) of $2.01.
Investors in Merck & Co are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.
It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.
Past Earnings Performance
In the previous earnings release, the company beat EPS by $0.08, leading to a 3.63% increase in the share price the following trading session.
Here's a look at Merck & Co's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 2.14 | 1.68 | 1.51 | 2.15 |
| EPS Actual | 2.22 | 1.72 | 1.57 | 2.28 |
| Price Change % | 4.0% | -1.0% | -0.0% | -2.0% |
Merck & Co Share Price Analysis
Shares of Merck & Co were trading at $84.71 as of July 25. Over the last 52-week period, shares are down 26.9%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.
Analyst Opinions on Merck & Co
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Merck & Co.
Analysts have given Merck & Co a total of 2 ratings, with the consensus rating being Neutral. The average one-year price target is $91.0, indicating a potential 7.43% upside.
Comparing Ratings Among Industry Peers
In this comparison, we explore the analyst ratings and average 1-year price targets of Pfizer, Bristol-Myers Squibb and Zoetis, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Pfizer, with an average 1-year price target of $25.0, suggesting a potential 70.49% downside.
- Analysts currently favor an Underperform trajectory for Bristol-Myers Squibb, with an average 1-year price target of $34.0, suggesting a potential 59.86% downside.
- Analysts currently favor an Neutral trajectory for Zoetis, with an average 1-year price target of $173.75, suggesting a potential 105.11% upside.
Insights: Peer Analysis
Within the peer analysis summary, vital metrics for Pfizer, Bristol-Myers Squibb and Zoetis are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Merck & Co | Neutral | -1.56% | $12.11B | 10.73% |
| Pfizer | Neutral | -7.82% | $10.87B | 3.32% |
| Bristol-Myers Squibb | Underperform | -5.60% | $8.17B | 14.57% |
| Zoetis | Neutral | 1.37% | $1.60B | 13.39% |
Key Takeaway:
Merck & Co ranks highest in Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.
All You Need to Know About Merck & Co
Merck makes pharmaceutical products to treat several conditions in a number of therapeutic areas, including cardiometabolic disease, cancer, and infections. Within cancer, the firm's immuno-oncology platform is growing as a major contributor to overall sales. The company also has a substantial vaccine business, with treatments to prevent pediatric diseases as well as human papillomavirus, or HPV. Additionally, Merck sells animal health-related drugs. From a geographical perspective, just under half of the company's sales are generated in the United States.
Merck & Co: A Financial Overview
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Decline in Revenue: Over the 3 months period, Merck & Co faced challenges, resulting in a decline of approximately -1.56% in revenue growth as of 31 March, 2025. This signifies a reduction in the company's top-line earnings. When compared to others in the Health Care sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 32.71%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 10.73%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Merck & Co's ROA stands out, surpassing industry averages. With an impressive ROA of 4.37%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.72.
To track all earnings releases for Merck & Co visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
