Merck & Co mauled as forecasts fall short

Shares in Merck & Co (NYSE: MRK) were more than 10% lower during Tuesday’s early trading in New York after the US pharma giant announced its second-quarter financial results and latest guidance for 2024.

Worldwide sales hit $16.11 billion, up 7% year-over-year and ahead of analysts’ expectations. Merck's adjusted earnings reversed from a year-earlier loss to $2.28 per share, beating Wall Street's forecast for $2.16. 

For the year, the company narrowed its sales outlook and now expects $63.4 billion to $64.4 billion. Merck also cut its adjusted earnings outlook $0.60 at the midpoint, to $7.94 to $8.04 per share. Analysts were expecting earnings of $8.16 a share and sales of $64.29 billion, with Merck’s more pessimistic view perhaps explaining the stock market reaction.