PREVIEW: Merck shares down; expected to report EPS, rev decline

Prometheus Biosciences

26/04/2023 17:27

** Shares in Merck & Co  MRK.N  down 2.4% on Wednesday ahead of
quarterly report due out before market open on Thursday
    ** MRK seen reporting adj EPS of $1.32 vs profit of $2.14 in
year-ago quarter, on rev of $13.78 bln, down 13.3% yr/yr,
according to Refinitiv
    ** In last 8 quarters, MRK rev beat estimates 7 times with
4.6% miss in Q1 2021, while EPS met or beat expectations with a 
13.9% miss in Q1 2021
    ** The stock last traded at $113.79 vs Wall Street median PT
of $125.50 - Refinitiv
    ** YTD, MRK shares now up ~2.5% vs ~3% drop for the S&P 500
healthcare index  .SPXHC  and a ~1% gain for the Dow Industrials
 .DJI 
    ** Earlier this month MRK said it would buy Prometheus
Biosciences Inc  RXDX.O  for about $10.8 billion, picking up a
promising experimental treatment for ulcerative colitis and
Crohn's disease and building up its presence in immunology 
    ** It said it expects a R&D charge of about $10.3 billion,
or $4/sh, this year to account for the deal as an asset
acquisition

 (Reporting By Sinéad Carew)
 ((sinead.carew@thomsonreuters.com;))