Merck Q4 Profit Surges On One-time Gain, Tops Estimates - Quick Facts

(RTTNews) - Merck & Co. Inc. (MRK) reported that its fourth-quarter net income attributable to the company surged to $7.316 billion from the prior year's $781 million, with earnings per share improving to $2.54 from $0.26 last year.

But, non-GAAP earnings per share declined to $0.87 from $0.88 last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.86 per share for the quarter. Analysts' estimates typically exclude special items. Non-GAAP earnings per share for the latest-quarter excluded acquisition- and divestiture-related costs, restructuring costs and certain other items, as well as an $11.2 billion gain on the divestiture of the Consumer Care business.

Sales for the quarter dropped to $10.482 billion from $11.319 billion in the prior year. Wall Street expected revenues of $10.50 billion for the quarter.

Merck expects its full-year 2015 non-GAAP earnings per share range to be between $3.32 and $3.47, including a $0.27 negative impact from foreign exchange. The range excludes acquisition- and divestiture-related costs and costs related to restructuring programs. Merck expects its full-year 2015 GAAP earnings per share range to be between $1.62 and $1.91.

At mid-January 2015 exchange rates, Merck anticipates full-year 2015 revenues to be between $38.3 billion and $39.8 billion, including a $2.6 billion negative impact from foreign exchange and approximately $1 billion of net lost sales from acquisitions and divestitures.

Wall Street currently is looking for fiscal year 2015 earnings of $3.49 per share on annual revenues of $40.50 billion.