Merck (MRK, $78.58) Q1 earnings beat estimates, as Keytruda sales surge +55%
Merck first quarter earnings surpassed analysts’ estimates, thanks in large part to its success in lung cancer treatment.
For the three months ending in March, the pharma company’s GAAP earnings came in at $1.12 per share, beating the Street consensus estimates by seven cents. The earnings per share more than quadrupled from the year-ago quarter.
Merck’s total revenues surged +8% year-over-year to $10.8 billion, on the back of a +55% sales growth of Keytruda lung cancer treatment.
CEO Ken Frazier highlighted investments in research and development as one of the factors behind Merck’s strong quarter.
Looking ahead, Merck lifted its full-year 2019 revenue outlook to a range of $43.9 to $45.1 billion, while forecasting GAAP earnings to range between $4.02 and $4.12 per share.
The company also revealed a global restructuring plan - which includes closing plants and slashing jobs - that is expected to get completed by 2023. According to Merck, pre-tax charge of between $800 million and $12 billion will mostly go towards paying employee separation and plant closure costs.
MRK's Stochastic Oscillator is remaining in oversold zone for 4 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where MRK's RSI Indicator exited the oversold zone, of 32 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MRK advanced for three days, in of 317 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 255 cases where MRK Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on December 17, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on MRK as a result. In of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for MRK turned negative on December 19, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MRK declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.826) is normal, around the industry mean (5.632). MRK's P/E Ratio (935.643) is considerably higher than the industry average of (48.974). Projected Growth (PEG Ratio) (0.105) is also within normal values, averaging (3.004). Dividend Yield (0.023) settles around the average of (0.164) among similar stocks. P/S Ratio (5.549) is also within normal values, averaging (3.643).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. MRK’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a developer of human and animal health products
Industry PharmaceuticalsMajor