>>> Merck misses by $0.01, reports revs in-line; guides FY14 EPS in-line, revs

Merck misses by $0.01, reports revs in-line; guides FY14 EPS in-line, revs

Reports Q4 (Dec) earnings of $0.88 per share, $0.01 worse than the Capital IQ Consensus Estimate of $0.89; revenues fell 3.6% year/year to $11.32 bln vs the $11.35 bln consensus.
  • Co issues guidance for FY14, sees EPS of $3.35-3.53 vs. $3.49 Capital IQ Consensus Estimate; sees FY14 revs of $42.4-43.2 bln vs. $43.28 bln Capital IQ Consensus Estimate.

Q4 Pharma sales highlights:
  • JANUVIA 1121 mln,
  • ZETIA 716 mln,
  • REMICADE 620 mln,
  • GARDASIL 394 mln,
  • JANUMET 503 mln,
  • ISENTRESS 442 mln,
  • VYTORIN 436 mln,
  • NASONEX 327 mln,
  • PROQUAD, M-M-R II and VARIVAX 273 mln,
  • SINGULAIR 298 mln,
  • Animal Health 871 mln,
  • Consumer Care 390 mln,
The gross margin was 59.3% for the fourth quarter of 2013 compared to 64.6% for last year's fourth quarter, reflecting unfavorable impacts of 13.7 and 10.4 percentage points, respectively, from the acquisition-related and restructuring costs noted above.

In addition, the company expects full-year 2014 non-GAAP marketing and administrative as well as R&D expenses to be below 2013 levels due to continuing prioritization and focused spending on core product lines and upcoming launches.

The company expects its full-year 2014 non-GAAP tax rate to be in the range of 24 to 26 percent; the rate does not include a 2014 benefit of an R&D tax credit.