Zacks Research Issues Negative Outlook for MRK Earnings

Key Points

• Zacks Research has lowered its Q2 2026 earnings estimate for Merck & Co., Inc. to $2.08 per share from a previous estimate of $2.11.
• Merck reported a net margin of 25.79% and earnings of $2.13 per share for Q2 2025, beating consensus estimates.
• Multiple analysts have downgraded their ratings and price targets for Merck, with a consensus target price now at $105.00 and an average rating of "Hold."

Merck & Co., Inc. (NYSE:MRK - Free Report) - Analysts at Zacks Research reduced their Q2 2026 earnings estimates for shares of Merck & Co., Inc. in a research note issued to investors on Monday, October 13th. Zacks Research analyst Team now forecasts that the company will post earnings per share of $2.08 for the quarter, down from their previous estimate of $2.11. The consensus estimate for Merck & Co., Inc.'s current full-year earnings is $9.01 per share. Zacks Research also issued estimates for Merck & Co., Inc.'s Q3 2026 earnings at $2.49 EPS, FY2026 earnings at $9.04 EPS, Q2 2027 earnings at $2.37 EPS and Q3 2027 earnings at $2.71 EPS.

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 (EPS) for the quarter, topping the consensus estimate of $2.03 by $0.10. Merck & Co., Inc. had a net margin of 25.79% and a return on equity of 41.05%. The business had revenue of $15.81 billion for the quarter, compared to analysts' expectations of $15.92 billion. Merck & Co., Inc. has set its FY 2025 guidance at 8.870-8.970 EPS.

Several other analysts have also recently weighed in on MRK. Weiss Ratings restated a "hold (c-)" rating on shares of Merck & Co., Inc. in a research report on Wednesday, October 8th. Wells Fargo & Company lowered 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 research report on Wednesday, July 30th. Berenberg Bank cut shares of Merck & Co., Inc. from a "buy" rating to a "hold" rating and lowered their price objective for the company from $100.00 to $90.00 in a research report on Wednesday, September 17th. Morgan Stanley lowered their price objective on shares of Merck & Co., Inc. from $99.00 to $98.00 and set an "equal weight" rating on the stock in a research report on Thursday, July 10th. Finally, Citigroup started coverage on shares of Merck & Co., Inc. in a research report on Monday. They set a "neutral" rating and a $95.00 price objective on the stock. 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. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $105.00.

Merck & Co., Inc. Stock Performance

NYSE MRK opened at $85.64 on Tuesday. Merck & Co., Inc. has a 1 year low of $73.31 and a 1 year high of $111.58. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.42 and a quick ratio of 1.17. The stock has a market capitalization of $213.90 billion, a PE ratio of 13.19, a P/E/G ratio of 0.88 and a beta of 0.37. The company's 50 day simple moving average is $83.58 and its two-hundred day simple moving average is $81.40.

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

A number of large investors have recently added to or reduced their stakes in the business. Legend Financial Advisors Inc. bought a new stake in Merck & Co., Inc. in the 2nd quarter worth $25,000. Barnes Dennig Private Wealth Management LLC bought a new stake in Merck & Co., Inc. in the 1st quarter worth $27,000. Kilter Group LLC bought a new stake in Merck & Co., Inc. in the 2nd quarter worth $27,000. Bare Financial Services Inc grew its holdings in Merck & Co., Inc. by 51.9% in the 2nd quarter. Bare Financial Services Inc now owns 366 shares of the company's stock worth $29,000 after acquiring an additional 125 shares during the last quarter. Finally, Evolution Wealth Management Inc. bought a new stake in Merck & Co., Inc. in the 2nd quarter worth $31,000. Hedge funds and other institutional investors own 76.07% of the company's stock.

Merck & Co., Inc. Announces Dividend

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

About Merck & Co., Inc.

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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