Merck reported fourth quarter earnings slightly ahead of Wall Street estimates on Wednesday, but warned that a stronger dollar would continue to eat into revenues.
The drugmaker said revenue declined 7% to $10.48 billion, dented by patent expirations and a stronger dollar, but still beating consensus estimates of $10.50 billion.
The stronger dollar has been a headwind for multinational companies that make a large chunk of revenues abroad, and Merck joined the throng warning shareholders that it would likely have a negative impact through 2015. The company is calling for full-year earnings of $3.32 to $3.47 per share, including a $0.27 negative impact from foreign exchange.
Profit for the quarter was $7.32 billion, surging from $781 million a year ago, due to the windfall it received from the sale of its consumer care business to Germany's
Excluding one-time items, adjusted net income was $2.5 billion, or 87 cents per share, beating Wall Street consensus estimates of 86 cents per share.
Sales were driven by diabetes pills Januvia and Janumet. Yet many of Merck's drugs, including cholesterol pills Zetia and Vytorin and arthritis drug Remicade, experienced declines of 10% or more.
Shares are up 21% over the last 12 months, and slid 1.6% to $60.02 in pre-market trading.
