- MRK stock sold off more than 10% during Tuesday's session.
- Merck reported Q4 sales and profit that beat Wall Street consensus.
- 2025 guidance was at least ~$2 billion below consensus.
- Shipments of Gardasil to China and a milestone payment on LM-299 are culprits.
Merck (MRK) stock sank like a stone on Tuesday after the pharmaceutical giant posted poor guidance for the rest of the year. Shares of the New Jersey-based maker of oncology best-seller Keytruda fell over 10% mid-session despite the company posting beats on the top and bottom lines in the fourth quarter.
The Dow Jones Industrial Average (DJIA), which holds Merck as a constituent, rose after a morning pullback. China responded to the Trump administration’s 10% tariff on its imports with its own smaller tariff package on US coal and other goods. China also opened an antitrust case into Alphabet (GOOGL), the timing of which is viewed as part and parcel of the trade war, in addition to reopening a prior case on Nvidia.
Merck earnings news: Q4 beats, but 2025 guidance hurts
Merck management provided shareholders with 2025 guidance for between $64.1 billion and $65.6 billion in full-year sales. This range was noticeably below the Wall Street consensus for roughly $67.4 billion.
Likewise, guidance for earnings per share (EPS) of $8.88 to $9.03 missed the $9.21 consensus by a significant margin.
In its own earnings release on Tuesday morning, fellow pharma giant Pfizer (PFE) also gave guidance that slightly underperformed market expectations. Most pharma stocks have been in retreat since Donald Trump selected vaccine and pharma sceptic Robert F. Kennedy, Jr. as his top health nominee.
But Merck’s fourth-quarter was quite successful. It reported adjusted EPS of $1.72, which was $0.04 ahead of consensus. Revenue of $15.62 billion was more than $100 million above the average projection.
Management partially blamed a one-time charge of about $0.09 per share related to a milestone payment to partner LaNova. The latter Chinese company is the developer of LM-299, a bispecific antibody used to treat cancer progression, which Merck markets globally.
Another factor in the reduced profit outlook is that Merck is pausing sales of its HPV vaccine Gardasil to China through the middle of the year.
Merck earnings news
Merck stock has moved back to the early October lows of last fall. MRK stock did recover somewhat toward the end of Tuesday's session, but shares are now trending well below moving averages.
The real support appears to stem from the middle of 2022 when the $83 to $85 zone saw a lot of volume. Buyers will likely wait until MRK descends to this level before picking up shares.
MRK weekly stock chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD remains offered below 1.1300
EUR/USD remains under pressure on Thursday, maintaining its trade below the key 1.1300 support. The pair's pullback coincides with a rebound in the US Dollar, buoyed by stronger-than-expected businnes activity gauges in the US.
GBP/USD keeps its bullish stance above 1.3400
Encouraging prints from flash UK PMIs seem to be lending a hand to the British Pound on Thursday, motivating GBP/USD to stick to daily gains and extend its advance for yet another day beyond 1.3400 the figure.
Gold battles to retain the $3,300 mark
Gold now seems to have embarked on a daly consolidative phase around the $3,300 mark per troy ounce amid the firm performance of the Greenback. However, a cautious market mood is helping to limit the downside for the precious metal.
Bitcoin celebrates annual Pizza Day with a new all-time high
Bitcoin (BTC) enthusiasts are celebrating Bitcoin Pizza Day with a banger. BTC made a new all-time high on Wednesday and has entered price discovery mode. The OG cryptocurrency is trading above $110,000 for the first time ever.
FOMO vs fundamentals: Retail buys the dip, institutional investors stay cautious
Retail optimism is rising, but institutions are still treading carefully amid lingering macro and earnings risks. Policy and fiscal uncertainty remain elevated, with trade tensions, U.S. debt concerns, and a cautious Fed dominating the backdrop.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.