Merck cuts guidances, unveils $15B buyback

Merck & Co. Inc. (NYSE:MRK) cut its 2013 guidance and announced a $15 billion share repurchase program as it released its 1Q13 earnings on Wednesday. Merck lowered its 2013 non-GAAP EPS guidance to $3.45-$3.55 from $3.60-$3.70. The company also now expects 2013 sales to be about 3-4% below 2012 sales of $47.3 billion, with foreign exchange rates accounting for over 2% of the decline. The pharma previously was expecting 2013 revenues to be "near 2012 levels." Merck attributed the lowered guidance in part to greater-than-expected pressures on sales due to "unfavorable" foreign exchange rates. The Street was expecting full year EPS of $3.63 on $46.2 billion in sales.

Merck reported 1Q13 worldwide sales of $10.7 billion, down 7% in constant exchange rates from $11.7 billion in 1Q12. The Street was expecting sales of $11.1 billion. Merck reported 1Q13 non-GAAP EPS of $0.85, down $0.14 from $0.99 in the prior year's quarter but beating the Street's estimate of $0.79. ...