Merck Up On Strong Earnings Today (MRK)

Merck & Co., Inc. MRK reported strong earnings today, and shares are higher, as Wall Street rewards the earnings beat. Merck earned 34 cents per share, or 92 cents per share excluding items. This beat Wall Street estimates of 84 cents per share. Revenues also beat Wall Street estimates, coming in at $11.58 billion, versus estimates of $11.37 billion. The company reported strong sales of Januvia, which rose 45% to $739 million. Janumet -- which pairs Januvia with diabetes treatment metformin also jumped in sales, rising 52% to $305 million. Singulair rose 14% to $1.33 billion. Singulair is Merck's best selling product. The company also upped the low end of its guidance, moving it to $3.66 to $3.76 per share. It also said that it would be cutting its R&D budget, going from $8.1-$8.5 billion to $8-$8.4 billion. "Merck's first quarter performance underscores that we are successfully delivering on our intent to grow both the top line and the bottom line," said Kenneth C. Frazier, president and chief executive officer. "Our strong results were largely driven by double-digit growth of key products combined with deliberate cost control measures across all areas of the company as we continue to create a more effective and efficient operating model. "It is clear that Merck's business momentum is building, and we continue to demonstrate the ongoing value of the merger. We're making progress in our robust late-stage pipeline, and leveraging the benefits of our expanded pharmaceutical and vaccine, animal health and consumer portfolio." At last check, shares of Merck were up 21 cents to $35.98, a gain of 0.6%.