UPDATE: Merck Q2 Profit Beats Street View, Shares Rise

Merck & Co MRK reported better-than-expected second-quarter profit. The Whitehouse Station, New Jersey-based company posted a quarterly profit of $2 billion, or $0.68 per share, compared to $906 million, or $0.30 per share, in the year-ago period. Excluding non-recurring items, it earned $0.85 per share. Its total sales fell 1% to $10.93 billion. However, analysts were expecting earnings of $0.81 per share on revenue of $10.59 billion. Its gross margin narrowed to 55.2% from 61.1%. Merck expects full-year adjusted earnings of $3.43 to $3.53 per share, versus analysts' estimates of $3.48 per share. The company earlier expected earnings of $3.35 to $3.53 per share. Pharmaceutical sales fell 2% to $9.1 billion, while animal health sales rose 2% to $872 million. Its global sales of consumer care products surged 19% to $583 million, while other revenue climbed 9% to $392 million. Marketing and administrative expenses, on a non-GAAP basis, fell to $2.9 billion from $3.1 billion, while research and development expenses, on a non-GAAP basis, fell to $1.6 billion from $1.9 billion. “We delivered a strong first half of the year, making progress in transforming our operating model, fueling innovation and managing costs, while focusing on our best opportunities,” said Kenneth C. Frazier, chairman and chief executive officer, Merck. Merck shares gained 1.07% to $58.59 in pre-market trading.