Health and Healthcare

What to Expect From Merck and Pfizer Earnings

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Pharmaceutical giants Merck & Co. Inc. (NYSE: MRK) and Pfizer Inc. (NYSE: PFE) are both releasing their first quarter financial results Tuesday before the markets open. Each of these companies is a leader in the health care sector which has had a strong year so far.

Comparatively Merck has a market cap of roughly $162 billion while Pfizer has a market cap of $213 billion. So far on the year, Merck shares have gained 2.3% and Pfizer shares have gained over 14%.

Merck has consensus estimates from Thomson Reuters of $0.74 in earnings per share (EPS) on $8.99 billion in revenue. The same period from last year had $0.88 in EPS on $10.26 billion in revenue.

This stock has been hit hard since printing a high in late January, and it may be offering new investors a very good entry point. It also remains a leading healthcare company that is on the focus lists of many top analyst firms. The company’s numerous prescription medicines, vaccines, biologic therapies and consumer care and animal health products are provided to customers in more than 140 countries.

Shares of Merck traded down 0.9% at $57.09. The stock has a consensus analyst price target of $63.85 and a 52-week trading range of $52.49 to $63.62.

Pfizer has consensus estimates of $0.49 in EPS on $10.73 billion in revenue. The first quarter from the previous year had $0.57 in EPS on $11.30 billion in revenue.

The pharmaceutical giant is the fifth-best Dow gainer so far this year at 14.5%, while rival Merck is up less than 3%. Many investors are operating under the premise that Pfizer is on the path to break up into two, or maybe even into three, companies. Its 3.2% yield also remains a draw. Still, patent cliffs are a constant challenge, and they are forcing Pfizer and other drug giants to look for opportunities in emerging pharma, biotech and internationally.

Shares of Pfizer were down 1.6% at $34.71. The stock has a consensus analyst price target of $36.60 and a 52-week trading range of $27.51 to $35.53.

ALSO READ: 4 Biotech and Pharma Stocks Projected to Rise 50% to 100%

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