Earnings Preview: Merck EPS, Revenue Expected to Rise from Previous Quarter

Merck MRK announces its next round of earnings this Friday, July 29, 2011. Here is Benzinga's everything-that-matters guide for this Friday's second quarter earnings announcement.

Earnings and Revenue:

Based on estimates, investors are readying for a positive EPS reading of 95 cents per share and revenues of $11.78 billion. Wall Street will be looking to see how this quarter's numbers compare to the year-ago quarter's positive EPS of 86 cents per share on revenues of $11.35 billion. We'll have to wait for Friday to see if Merck has accomplished the estimated 10.5% rise in EPS and 3.8% increase in revenues on a year-over-year basis.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

Shares of Merck were trading at $35.89 as of July 25, 2011. Shares are up 1.8% year to date. For a full 12 months, the return has risen by 1.8%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Merck is a Moderate Buy. This rating has strengthened slightly over the past ninety days.

Competitors:

Wondering how Merck compares to rivals in the same sector? Here are a few of the company's peers.

• Abbott Laboratories ABT: Hold with a $1.12 recent quarter EPS
• Bristol-Myers Squibb BMY: Hold with a $0.58 recent quarter EPS
• GlaxoSmithKline plc (ADR GSK: Hold with a $1.01 recent quarter EPS
• Johnson & Johnson JNJ: Moderate Buy with a $1.28 recent quarter EPS

Merck is in the large-cap pharmaceutical industry, which has experienced price/earnings growth of 2.9%.

Finally, a description of the company's main areas of operation: Merck is a global research-driven company that develops and manufactures a range of innovative pharmaceutical products to improve human and animal health.

Take Action:

There is your peek into Merck's upcoming earnings numbers, including some competitors to watch around the time of the announcement. Check back in with us after the announcement for a full recap of the announcement. In the meantime, here are some links to explore today.

• To see up-to-date news on Merck, click here
• To see other trading ideas, click here
• To see other company earnings recaps, click here