Merck & Co (MT5: # Merck & Co), the world leading bio-pharmaceutical giant, will report on the 4th quarter report of 2020 on 4 February 2021 before the market opens. Merck is a pioneer in the study of major diseases that infect humans and animals such as cancer, infectious diseases such as Ebola, Rubella, sexually transmitted diseases and HIV. With most hospitals around the world focused on Covid-19 treatment and the global economy affected by activity closures and movement control directives, it affected Merck sales revenue for 2020. But sales revenue is expected to remain strong based on previous quarterly reports.
Merck & Co reported a 20.83% increase in the previous quarterly report, and the company performance reported better than projected over the past 4-quarters.
Merck is expected to report flat earnings compared to the previous quarter despite weak sales of vaccines produced by companies such as Proquad and Gadasil. Meanwhile, in the development of the Covid-19 vaccine, Merck announced the termination of the vaccine research program at an early stage due to poor results.
The market expects Merck revenue for the 4th quarter of 2020 to be around $ 12.5 billion slightly lower than the consensus $ 12.7 billion. While Zacks.com projected earnings per share (earning per share) expected at $ 1.36 (+ 2.27%) with the highest expectation of $ 1.40.
Sumber:Nasdaq.com
Sumber:Nasdaq.com
Shares of Merck & Co have declined over 11% over the past year, with other companies in the pharmaceutical industry recording a 5% increase. The weakness in stock prices over its competitors may be due to the failure of the Covid-19 vaccine test in the early stages by Merck. Merck is currently closed at $ 77.41, slightly above the 2021 low of $ 76.39, while the 2021 high is $ 85.59. It is currently trading below the 50% Fibonacci retracement of the 2019-2020 fall level and is trading below the weekly 50-SMA level.
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Tunku Ishak Al-Irsyad
Market Analyst – HF Malaysia
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