Merck's 2020 Top Line, Adjusted Earnings Guidance in Line With Analysts' Consensus

By Allison Prang

Merck & Co.'s (MRK) 2020 guidance for sales and adjusted earnings is in line with what Wall Street is expecting.

The company said it expects adjusted earnings between $5.62 a share and $5.77 a share. That would be up from $5.19 a share in 2019. According to FactSet, analysts are expecting 2020 adjusted earnings of $5.64 a share.

Merck said expects GAAP earnings between $4.57 a share and $4.72 a share.

Merck said it expects revenue to be between $48.8 billion and $50.3 billion. Analysts consensus is $49.64 billion. In 2019, revenue was $46.84 billion.

It expects adjusted operating costs to rise from 2019, increasing by a low-single-digit rate, it said. The company said it is guiding for GAAP operating costs to fall slightly compared with 2019.

Merck also is guiding for an adjusted effective tax rate of between 17.5% an 18.5%. It expects its GAAP tax rate to be between 17% and 18%, it said.

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

(END) Dow Jones Newswires

February 05, 2020 07:36 ET (12:36 GMT)

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