Merck & Co. Reports Strong Q4 Earnings Despite Challenges, Faces Stock Decline Following Guidance and HPV Vaccine Shipment Suspension

published -

Monday

17 February, 2025

Merck & Co. demonstrated impressive resilience with a 7% increase in Q4 sales, driven by strong performance from its cancer drug Keytruda. Yet, concerns over future revenue guidance and a 10% stock decline raise questions about the sustainability of this growth—can Merck navigate these challenges effectively?

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Key Takeaways

Merck & Co. reported impressive fourth-quarter sales of $15.62 billion, marking a 7% increase from the previous year.
Keytruda, the company's primary cancer treatment, contributed significantly with $7.84 billion in sales, a 19% growth.
Analysts uphold a "Strong Buy" rating for Merck, with a target price suggesting over 20% upside potential.
Validea's Earnings Yield Investor model rates Merck at 90%, indicating robust fundamentals and appealing stock valuation.
The company is expected to maintain strong long-term growth through ongoing innovation despite facing short-term hurdles.