Merck Increases Guidance for Revenue, Adjusted Earnings, Lowers GAAP Profit Expectations

   By Allison Prang

Merck & Co. Inc. (MRK) raised its expectations for revenue and adjusted earnings for the fiscal year and lowered its guidance for GAAP profit.

The company now expects revenue to be between $45.2 billion and $46.2 billion. In April, it said it was expecting between $43.9 billion and $45.1 billion. Analysts polled by FactSet are expecting $44.71 billion.

The company is now expecting adjusted earnings to be between $4.84 a share and $4.94 a share. It had been expecting between $4.67 a share and $4.79 a share. Analysts are expecting $4.75 a share.

Merck lowered its GAAP earnings estimates and expects those earnings to be between $3.78 a share and $3.88 a share. The company said that includes a charge of about $1.1 billion from the company buying Peloton Therapeutics Inc. Merck had been expecting earnings between $4.02 a share and $4.14 a share.

The company said it expects GAAP operating expenses to be higher than 2018 by a low single digit rate. It had previously said it was expecting those to be lower than 2018 by a mid single digit rate.

The company also lowered its guidance for its GAAP effective tax rate and expects it to be between 16% and 17%. It had been expecting it to be between 16.5% and 17.5%.

Write to Allison Prang at allison.prang@wsj.com

(END) Dow Jones Newswires

July 30, 2019 07:39 ET (11:39 GMT)

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