Merck & Company, Inc. Common St (NYSE: MRK), a global health care company that delivers health solutions through its medicines, vaccines, biologic therapies, and consumer and animal products, which it markets directly and through its joint ventures reported disappointing fourth fiscal quarter results and swung to a loss of $531 million or 17 cents a share, a decrease of 107.65% year over year today with weak 2011 outlook.
The Company posted net loss of $531 million or 17 cents per share in the fourth fiscal quarter, down from a profit of $6.94 billion or $2.35 per share in the same quarter last year.
Excluding one-time items, the company earned 88 cents per share in the quarter, above the street estimate of 83 cents per share. A 5 cent beat on EPS versus consensus was mainly the result of very low tax rate, due in part to the extension of the R&D tax credit
Sales rose 20% to $12.1 billion from $10.1 billion, above the street estimate of $11.55 billion.
The strong performance was driven by ex-US pharma sales and the lower tax rate partially offset by a weaker gross margin, higher SG&A and higher other expenses.
Management issued non-GAAP EPS guidance for FY 2011 in a range of $3.64-$3.76, 3% below consensus $3.81. It expects strong revenue of “low- to mid-single digits” implying $46.5 billion to $48.8 billion versus the Streets estimate of $45.0 billion. Management assumes a tax rate range of 20%-22%.
Management withdrew their previous long-term guidance of high single-digit non-GAAP EPS CAGR from 2009-2013.
The stock tumbled $1.00 or 2.96% and is currently trading at $32.82 after reporting fourth fiscal quarter results and 2011 outlook.
Shares of the company opened at $32.99 and traded in the range of $32.51-$33.03 with lower volume of 11.78 million shares, compared to the daily average volume of 18.48 million shares. The stock has 52 week range of $30.70-$39.42. The market capitalization of the stock stands at $100.99 billion with beta of 0.85 and P/E of 11.73.
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