Embattled drugmaker sees further drop in earnings, but reaffirms lowered targets for '04.
December 8, 2004: 7:48 AM EST
NEW YORK (CNN/Money) - Embattled drugmaker Merck & Co. warned Wednesday that it'll miss Wall Street's expectations for 2005 earnings, although it reaffirmed its fourth quarter and 2004 guidance.
The company that withdrew its pain treatment Vioxx from the market Sept. 30 due to increased risk of heart attack and stroke said it now expects 2005 earnings of $2.42 to $2.52. Analysts surveyed by earnings tracker First Call had forecast the company to earn $2.56 a share in 2005, with a range of estimates between $2.40 and $2.80.
The 2005 forecast is lower than the company's EPS guidance for 2004 of between $2.59 and $2.64 that it gave in October, and that guidance was down from an earlier target of $3.11 and $3.17, before the Vioxx withdrawal. The company earned $2.92 a share excluding special items in 2003.
The company said it is still on target to earn between 48 to 53 cents this quarter. First Call's forecast is for EPS of 50 cents, down from 62 cents a year earlier.
Shares of Merck (Research), a component of the Dow Jones industrial average, was up 11 cents to $28 in pre-market trading on Inet even after the warning.
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