UPDATE: Merck Q3 Earnings Top Street View

Merck & Co

reported better-than-expected earnings for the third quarter and narrowed its forecast for the year. Merck now expects full-year earnings of $3.46 to $3.50 per share, versus its earlier forecast of $3.43 to $3.53 per share. It now projects revenue of $42.4 billion to $42.8 billion. The Whitehouse Station, New Jersey-based company posted a quarterly profit of $895 million, or $0.31 per share, versus a year-ago profit of $1.12 billion, or $0.38 per share. Excluding certain items, its earnings declined to $0.90 per share from $0.92 per share. Its revenue slipped 4.3% to $10.56 billion. However, analysts were expecting earnings of $0.88 per share on revenue of $10.64 billion. Merck's pharmaceutical sales shrank 4% to $9.1 billion, while the animal-health segment's sales climbed 11% to $885 million. Sales for the consumer-care unit dropped 9% to $401 million, while other revenue tumbled 56% to $137 million in the quarter. The gross margin narrowed to 60.0% from 62.8%. “Last October, we launched a multi-year initiative to transform Merck and build a platform for sustained, future growth,” said Kenneth C. Frazier, chairman and chief executive officer, Merck. “One year later, we delivered solid third-quarter results and are making steady progress in our transformation, including divesting non-core assets, reducing our expense base and investing in our promising new product launches and pipeline.” The company also received the FDA Breakthrough Therapy Designation for KEYTRUDA in advanced non-small cell lung cancer. Merck shares rose 0.68% to $58.00 in pre-market trading.