This morning, Merck (NYSE: MRK) unveiled first-quarter earnings, which dropped 57% thanks to a drop in both drug sales and income from its cholesterol medicine partnerships. Excluding charges, Merck brought in 74 cents per share in quarterly earnings. The results were a full three cents short of the consensus estimate.Turning to revenue, Merck reported $5.39 billion - an 8% drop from a year ago. The consensus estimate for quarterly revenue was $5.77 billion, so the results were far short of the bar set by the Street.
Turning an eye to the future, Merck announced that yearly adjusted earnings are still expected to come in between $3.15 and $3.30 per share. The company cut its revenue forecast to $23.2 billion, which is a drop of $500 million.
Merck also announced that it will delay the filing of the U.S. application for telcagepant. This medicine is used to treat acute migraines. Merck does not expect a filing on telcagepant this year.
Technically, Merck faces intense overhead pressure from its 10-month moving average. This trendline has bullied the stock lower since the beginning of 2008, and this morning's announcement shouldn't do much to help the shares push higher. Any support would be a welcomed sight, but there is little to no chance for underlying technical support to step up and lend a hand. The picture is certainly mercky for the pharmaceutical firm, especially in light of this morning's news.
Closing Bell: Economic Catapult for Thanksgiving & Black Friday (WMT, TGT, GRMN, GOOG, MSFT)
Deere up on Q4 earnings performance
Reid Hoffman: LinkedIn will go public (at some point)
