Cantor Fitzgerald Has Weak Outlook for MRK FY2026 Earnings

Key Points

• Cantor Fitzgerald has lowered its FY2026 earnings per share (EPS) estimate for Merck & Co., Inc. to $9.41, down from its previous estimate of $9.61, with the consensus estimate currently at $9.01.
• Multiple analysts, including Morgan Stanley and Berenberg Bank, have revised their price targets for Merck shares, indicating a bearish outlook with most ratings falling to "Hold" or lower.
• Merck recently announced a quarterly dividend of $0.81, with a yield of 3.8%, and a payout ratio close to 50%, indicating a commitment to returning value to shareholders.

Merck & Co., Inc. (NYSE:MRK - Free Report) - Stock analysts at Cantor Fitzgerald cut their FY2026 EPS estimates for shares of Merck & Co., Inc. in a research note issued to investors on Thursday, October 9th. Cantor Fitzgerald analyst C. Gould now forecasts that the company will post earnings per share of $9.41 for the year, down from their prior forecast of $9.61. The consensus estimate for Merck & Co., Inc.'s current full-year earnings is $9.01 per share.

Other analysts also recently issued research reports about the stock. Morgan Stanley dropped their price target on shares of Merck & Co., Inc. from $99.00 to $98.00 and set an "equal weight" rating on the stock in a report on Thursday, July 10th. Berenberg Bank downgraded shares of Merck & Co., Inc. from a "buy" rating to a "hold" rating and dropped their price target for the company from $100.00 to $90.00 in a report on Wednesday, September 17th. Wells Fargo & Company dropped their price objective on shares of Merck & Co., Inc. from $97.00 to $90.00 and set an "equal weight" rating on the stock in a report on Wednesday, July 30th. Finally, Weiss Ratings reissued a "hold (c-)" rating on shares of Merck & Co., Inc. in a report on Wednesday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Merck & Co., Inc. has a consensus rating of "Hold" and an average target price of $104.31.

Merck & Co., Inc. Stock Performance

Shares of NYSE MRK opened at $86.02 on Monday. The firm's 50-day moving average price is $83.47 and its 200-day moving average price is $81.42. The company has a quick ratio of 1.17, a current ratio of 1.42 and a debt-to-equity ratio of 0.69. The company has a market cap of $214.87 billion, a PE ratio of 13.25, a PEG ratio of 0.88 and a beta of 0.37. Merck & Co., Inc. has a 52-week low of $73.31 and a 52-week high of $111.58.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last announced its quarterly earnings results on Tuesday, July 29th. The company reported $2.13 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.03 by $0.10. The firm had revenue of $15.81 billion for the quarter, compared to the consensus estimate of $15.92 billion. Merck & Co., Inc. had a net margin of 25.79% and a return on equity of 41.05%. Merck & Co., Inc. has set its FY 2025 guidance at 8.870-8.970 EPS.

Merck & Co., Inc. Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, October 7th. Investors of record on Monday, September 15th were issued a $0.81 dividend. The ex-dividend date of this dividend was Monday, September 15th. This represents a $3.24 dividend on an annualized basis and a dividend yield of 3.8%. Merck & Co., Inc.'s dividend payout ratio (DPR) is presently 49.92%.

Hedge Funds Weigh In On Merck & Co., Inc.

Several large investors have recently added to or reduced their stakes in MRK. DLD Asset Management LP purchased a new position in Merck & Co., Inc. during the second quarter valued at approximately $2,889,340,000. Norges Bank bought a new stake in shares of Merck & Co., Inc. during the second quarter valued at approximately $2,858,570,000. Charles Schwab Investment Management Inc. raised its position in shares of Merck & Co., Inc. by 144.6% during the first quarter. Charles Schwab Investment Management Inc. now owns 49,229,283 shares of the company's stock valued at $4,418,820,000 after buying an additional 29,104,112 shares during the last quarter. Nuveen LLC bought a new stake in shares of Merck & Co., Inc. during the first quarter valued at approximately $991,553,000. Finally, Franklin Resources Inc. raised its position in shares of Merck & Co., Inc. by 23.5% during the second quarter. Franklin Resources Inc. now owns 27,032,601 shares of the company's stock valued at $2,139,901,000 after buying an additional 5,135,748 shares during the last quarter. Hedge funds and other institutional investors own 76.07% of the company's stock.

Merck & Co., Inc. Company Profile

Merck & Co, Inc is a health care company, which engages in the provision of health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. It operates through the following segments: Pharmaceutical, Animal Health, and Other. The Pharmaceutical segment includes human health pharmaceutical and vaccine products.

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