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Rahway, New Jersey-based Merck & Co., Inc. (MRK) functions as a healthcare company. Valued at $200 billion by market cap, the company delivers health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products, which it markets directly and through its joint ventures. The pharmaceutical giant is expected to announce its fiscal first-quarter earnings for 2025 before the market opens on Thursday, Apr. 24.
Ahead of the event, analysts expect MRK to report a profit of $2.16 per share on a diluted basis, up 4.4% from $2.07 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect MRK to report EPS of $8.96, up 17.1% from $7.65 in fiscal 2024. Its EPS is expected to rise 9.6% year over year to $9.82 in fiscal 2026.
MRK stock has considerably underperformed the S&P 500’s ($SPX) 3.2% gains over the past 52 weeks, with shares down 37.2% during this period. Similarly, it underperformed the Health Care Select Sector SPDR Fund’s (XLV) 2.9% dip over the same time frame.
Merck's underperformance is due to temporarily halting Gardasil vaccine shipments to China, sluggish consumer demand, and rising competition in diabetes and challenges in China. Concerns also exist about Merck's ability to navigate the Keytruda loss of exclusivity period and potential competition.
On Feb. 4, MRK shares closed down more than 9% after reporting its Q4 results. Its adjusted EPS of $1.72 surpassed Wall Street expectations of $1.69. The company’s revenue was $15.62 billion, beating Wall Street forecasts of $15.55 billion. For fiscal 2025, MRK expects full-year adjusted EPS to be between $8.88 and $9.03, and expects revenue to be between $64.1 billion and $65.6 billion.
Analysts’ consensus opinion on MRK stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 23 analysts covering the stock, 15 advise a “Strong Buy” rating, and eight give a “Hold.” MRK’s average analyst price target is $110.19, indicating an ambitious potential upside of 39.2% from the current levels.
