Merck Down 2% After Reaffirming 2012 Guidance

Shares of Merck MRK are down 2% after the company reaffirmed its 2012 guidance this morning. The company today re-confirmed its expectations for full-year 2012 non-GAAP EPS to be between $3.75 and $3.85, and the 2012 GAAP EPS range to be $2.04 to $2.30. The 2012 non-GAAP range excludes acquisition-related costs and costs related to restructuring programs. As previously noted, Merck expects full-year 2012 revenues to be at or near 2011 levels on a constant currency basis. At current exchange rates, sales would be unfavorably affected by about 2 to 3 percent. The company is providing guidance about its expectations for the first quarter of 2012 to help investors understand the impact of exchange in the quarter. With a first quarter Euro exchange rate of approximately $1.31/Euro, currency is expected to have approximately a 1 to 2 percent unfavorable impact on sales in the first quarter. Merck expects first-quarter non-GAAP EPS to be between $0.95 and $0.98, and the GAAP EPS range to be $0.52 to $0.60.