Shares of drug maker Merck & Co Inc. (NYSE: MRK) are trading down 3.0% in early day trading after the company stated its 2007 profit forecast, which fell short of analysts' expectations. The company also forecast an earnings increase in 2008 due to strong sales of its HPV vaccine Gardasil and diabetes treatment Januvia. Merck announced it expects earnings between $3.08 and $3.14 a share for 2007, while analysts, on average, predicted earnings of $3.15 a share. Including items, the company predicted its earnings will fall in a range between $1.45 to $1.51 per share.
Looking ahead to 2008, the company now anticipates its profit will rise to a range of $3.28 to $3.38 a share helped by increased sales of its products. Including a $100 million restructuring charge and an AstraZeneca partnership gain, the company forecast earnings between $3.96 to $4.06 a share in 2008. But the target offered by Merck for 2008 also missed analysts' predictions for earnings of $3.39 a share.
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