Merck Backs Full-Year Guidance, Continues to See Pandemic Impact

By Matt Grossman

Merck & Co. reaffirmed its full-year guidance Thursday, although the company said it expects the coronavirus pandemic to continue to have a negative affect on its revenue.

The Kenilworth, N.J.-based pharmaceutical company said it expects full-year revenue of $51.8 billion to $53.8 billion, and adjusted earnings of $6.48 to $6.68 a share.

Those guidance ranges are the same as those that Merck issued in February. Analysts polled by FactSet have been forecasting adjusted earnings of $6.49 a share, on revenue of $52 billion.

Merck said it expects that the negative impact from the Covid-19 pandemic on its results will persist, especially in the first half of the year. Overall, the pandemic will have a net unfavorable effect on 2021 revenue of 3%, the company forecast, with all of that hit attributable to the pharmaceutical segment.

Merck's guidance ranges assume that its Organon business will be part of the company for the full year, although Merck plans a spinoff of Organon effective June 2. If the spinoff occurs, Merck will update its guidance, the company said.

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(END) Dow Jones Newswires

April 29, 2021 07:22 ET (11:22 GMT)

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