Merck (MRK) stock was mangled today after the pharmaceutical and vaccine company released its guidance for 2025. The company expects adjusted earnings per share for the year to range from $8.88 to $9.03. Investors are worried about this outlook as it will result in Merck missing Wall Street’s 2025 adjusted EPS estimate of $9.51. It’s worth noting the company’s adjusted EPS guidance would still represent an increase over the $7.65 reported in 2024.
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Even so, guidance falling short of analysts’ estimates has MRK stock down 8.16% during pre-market trading today. That more than erases the company’s 0.31% increase year-to-date and extends its loss of 18.76% over the past 52 weeks.
Merck Q4 EPS and Revenue Beat Estimates
It’s a shame Merck’s guidance couldn’t stand up to Wall Street’s estimates. It drags down an otherwise solid earnings report for the company with adjusted EPS of $1.72 and revenue of $16.62 billion. These beat analysts’ estimates of $1.61 per share and revenue of $15.49 billion. They were also up 5,622% and 7%, respectively, year-over-year.
Merck Chairman and CEO Robert Davis contributes the company’s strong performance in 2024 to the demand for its “innovative portfolio, including for KEYTRUDA” as well as “the successful launch of WINREVAIR and strong performance of our Animal Health business.”
Is MRK Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Merck is Moderate Buy based on 11 Buy and seven Hold ratings over the last three months. With that comes an average price target of $120.80 with a high forecast of $145.00 and a low forecast of $105. This represents a potential 21.05% upside for MRK stock. These ratings and price targets will likely change as analysts update their coverage after this earnings report.
