UPDATE: Merck Posts Upbeat Q4 Earnings, Sales Decline

reported better-than-expected earnings for the fourth quarter. For FY15, Merck projects earnings, including a $0.27 per share negative impact from foreign exchange, of $3.32 to $3.47 per share, and sales of $38.3 billion to $39.8 billion. Analysts expected earnings of $3.49 per share on sales of $40.5 billion. The Whitehouse Station, New Jersey-based company reported quarterly earnings of $7.32 billion, or $2.54 per share, compared to $781 million, or $0.26 per share, in the year-ago period. Excluding certain items, the company's earnings shrank to $0.87 per share from $0.88 per share. Its sales dropped 7.4% to $10.48 billion. However, analysts were expecting earnings of $0.85 per share on revenue of $10.5 billion. Merck's pharmaceutical sales fell 4% to $9.37 billion, while sales at the animal health segment gained 2% to $885 million. The gross margin widened to 64.2% from 59.3%. "Our stronger focus has led to better, consistent execution, and our results in 2014 demonstrate the significant progress we've made in evolving the company to better serve health care markets around the world," said Kenneth C. Frazier, chairman and chief executive officer, Merck. "As we look forward to 2015 and beyond, we will continue to focus our resources on those internal and external opportunities that can generate the most value for patients, customers and shareholders." Merck shares fell 1.26% to $60.25 in pre-market trading.