Leerink Partnrs Has Negative Outlook of MRK FY2025 Earnings

Key Points

• Leerink Partners has revised its forecast for Merck & Co., Inc. (MRK), lowering FY2025 earnings per share estimates from $8.96 to $8.79, while the current consensus estimate stands at $9.01.
• Several analysts have recently downgraded their ratings on Merck, with Berenberg Bank moving from a "buy" to a "hold" rating and reducing its price target from $100 to $90.
• Merck's stock has seen a decline of 1.0%, currently priced at $84.82, with projections indicating a consensus rating of "Hold" and an average target price of $105.00.

Merck & Co., Inc. (NYSE:MRK - Free Report) - Analysts at Leerink Partnrs lowered their FY2025 earnings per share estimates for shares of Merck & Co., Inc. in a note issued to investors on Monday, October 13th. Leerink Partnrs analyst D. Graybosch now forecasts that the company will post earnings of $8.79 per share for the year, down from their prior forecast of $8.96. The consensus estimate for Merck & Co., Inc.'s current full-year earnings is $9.01 per share. Leerink Partnrs also issued estimates for Merck & Co., Inc.'s Q2 2026 earnings at $2.10 EPS, Q4 2026 earnings at $2.16 EPS, FY2028 earnings at $9.87 EPS and FY2029 earnings at $10.36 EPS.

Other research analysts have also issued research reports about the company. Berenberg Bank lowered Merck & Co., Inc. from a "buy" rating to a "hold" rating and cut their price objective for the stock from $100.00 to $90.00 in a report on Wednesday, September 17th. Citigroup initiated coverage on Merck & Co., Inc. in a research report on Monday. They issued a "neutral" rating and a $95.00 target price for the company. Morgan Stanley dropped their target price on Merck & Co., Inc. from $99.00 to $98.00 and set an "equal weight" rating for the company in a research report on Thursday, July 10th. Wells Fargo & Company dropped their target price on Merck & Co., Inc. from $97.00 to $90.00 and set an "equal weight" rating for the company in a research report on Wednesday, July 30th. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of Merck & Co., Inc. in a research report on Wednesday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $105.00.

Merck & Co., Inc. Stock Down 1.0%

MRK stock opened at $84.82 on Wednesday. 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 firm has a market capitalization of $211.86 billion, a PE ratio of 13.07, a PEG ratio of 0.94 and a beta of 0.37. Merck & Co., Inc. has a twelve month low of $73.31 and a twelve month high of $111.58. The stock has a 50-day simple moving average of $83.67 and a two-hundred day simple moving average of $81.42.

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

Merck & Co., Inc. Dividend Announcement

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

Institutional Investors Weigh In On Merck & Co., Inc.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Barnes Dennig Private Wealth Management LLC purchased a new stake in shares of Merck & Co., Inc. in the first quarter worth $27,000. Legend Financial Advisors Inc. purchased a new stake in shares of Merck & Co., Inc. in the second quarter worth $25,000. Kilter Group LLC purchased a new stake in shares of Merck & Co., Inc. in the second quarter worth $27,000. Bare Financial Services Inc lifted its holdings in shares of Merck & Co., Inc. by 51.9% during the second quarter. Bare Financial Services Inc now owns 366 shares of the company's stock valued at $29,000 after purchasing an additional 125 shares in the last quarter. Finally, CBIZ Investment Advisory Services LLC lifted its holdings in shares of Merck & Co., Inc. by 141.7% during the first quarter. CBIZ Investment Advisory Services LLC now owns 377 shares of the company's stock valued at $34,000 after purchasing an additional 221 shares in the last quarter. 76.07% of the stock is owned by hedge funds and other institutional investors.

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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