Merck Shares Plunge 8% as Weak Guidance Overshadows Strong Revenue Growth
Date: 2025-02-04 09:33:00
Merck & Co (NYSE:MRK) saw its stock sink over 8% in pre-market today after delivering mixed fourth-quarter results, with earnings missing expectations, revenue exceeding forecasts, and full-year guidance coming in below analyst estimates.
For Q4, the pharmaceutical giant reported adjusted earnings per share (EPS) of $1.72, falling short of the $1.81 consensus estimate. However, revenue climbed 7% year-over-year to $15.6 billion, surpassing projections of $15.47 billion. Excluding foreign exchange impacts, revenue rose 9%.
Merck's 2025 outlook disappointed investors, with adjusted EPS guidance of $8.88 to $9.03, below Wall Street’s forecast of $9.21. The company also anticipates full-year revenue between $64.1 billion and $65.6 billion, missing the consensus estimate of $67.36 billion.
For the full year 2024, Merck posted $64.2 billion in worldwide sales, reflecting 7% annual growth—or 10% on a constant currency basis. The company’s flagship cancer treatment, KEYTRUDA, remained a key driver, with sales surging 18% to $29.5 billion.
Author: Davit Kirakosyan
Source: Financial Modeling Prep
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Estee Lauder Shares Drop 7% on Weak Q3 Outlook Despite Strong Q2 Earnings
Date: 2025-02-04 09:26:00
Estee Lauder Companies Inc. (NYSE:EL) saw its stock tumble over 7% in pre-market today after issuing a disappointing third-quarter outlook, overshadowing better-than-expected earnings for Q2 of fiscal 2025.
The cosmetics giant posted earnings per share (EPS) of $0.62 for Q2, far exceeding analyst projections of $0.31. Revenue came in at $4 billion, slightly ahead of the anticipated $3.98 billion.
By region, North American sales dipped 1.5% to $1.22 billion, in line with expectations. EMEA revenue dropped 6% to $1.49 billion, while Asia Pacific sales declined 11% to $1.29 billion, narrowly topping the $1.27 billion consensus estimate.
Despite the solid Q2 performance, guidance for Q3 fell well short of expectations. The company projected EPS between $0.24 and $0.34, drastically below the $0.64 forecasted by analysts.
CEO Stéphane de La Faverie acknowledged the disappointing outlook, attributing the weakness primarily to sluggish retail sales in Asia's travel sector, which deteriorated further in Q2, particularly in Korea.
Looking ahead, the company expects the difficult retail conditions in Asia travel retail to persist, significantly weighing on organic net sales, despite the stabilization of in-trade inventory levels achieved in the first half of fiscal 2025.
Author: Davit Kirakosyan
Source: Financial Modeling Prep
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PayPal's Posts Strong Q4 Results & 2025 Outlook, But Shares Drop 5%
Date: 2025-02-04 09:21:00
PayPal (NASDAQ:PYPL) delivered an optimistic earnings forecast for 2025, outpacing analyst expectations, while fourth-quarter results also came in ahead of estimates, reinforcing signs that the company’s strategic overhaul is gaining traction. However, the company’s shares dropped more than 5% pre-market today.
Under the leadership of CEO Alex Chriss, who took over last year, PayPal has been aggressively cutting costs and redirecting investments toward automation and artificial intelligence. A major shift in focus has also been underway, moving away from lower-margin divisions like Braintree and prioritizing highly profitable segments such as branded checkout.
For the 2025 fiscal year, PayPal expects earnings per share between $4.95 and $5.10, comfortably surpassing Wall Street’s estimate of $4.89. Additionally, first-quarter EPS guidance of $1.15 to $1.17 also exceeded expectations.
CEO Alex Chriss noted that PayPal is experiencing “strong momentum”, positioning the company for sustained growth in 2025, with a key priority being wider adoption of its services.
In the fourth quarter, total payment volume rose 6.8% year-over-year to $437.84 billion, while active customer accounts grew by 1.9% to 434 million. As a leading digital payments provider, PayPal generates substantial revenue through transaction fees, collected from both retailers and consumers.
The company reported adjusted earnings per share of $1.19, up from $1.14 a year ago, and beating analyst projections of $1.13. With a renewed focus on AI-driven efficiencies and high-margin transactions, PayPal appears poised to unlock greater profitability in the coming year.
Author: Davit Kirakosyan
Source: Financial Modeling Prep
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NXP Semiconductors Tops Q4 Estimates, But Outlook Disappoints
Date: 2025-02-04 09:13:00
NXP Semiconductors NV (NASDAQ:NXPI) delivered a stronger-than-expected fourth-quarter performance, with earnings and revenue slightly exceeding analyst projections, but provided a weaker-than-anticipated first-quarter forecast.
For Q4, the Dutch semiconductor company reported earnings per share of $3.18, edging past the $3.14 consensus estimate. Revenue declined 9% year-over-year to $3.11 billion, but still managed to surpass Wall Street’s $3.1 billion projection.
Looking ahead, NXP’s first-quarter 2025 guidance fell short of market expectations. The company anticipates earnings per share between $2.29 and $2.79, below the $2.69 analyst consensus. Revenue projections range between $2.725 billion and $2.925 billion, trailing expectations of $2.92 billion at the midpoint.
Despite the soft outlook, CEO Kurt Sievers highlighted the company’s resilience in a difficult market, citing strong execution, stable gross margins, and healthy free cash flow generation as key strengths throughout 2024.
Author: Davit Kirakosyan
Source: Financial Modeling Prep
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