MERCK Q2 PROFIT TOPS EXPECTATIONS, STOCK ABOVE ALL MAs
Merck & Co.’s stock is currently trading at 83.15-higher by 0.80% as compared to the previous closing price. In the pre-market trading session, the stock was trading higher by 3.04%. The stock has erased some of its earlier gains after the opening bell.
The drugmaker reported its second-quarter earnings before the market opens on Tuesday. Merck generated an EPS (excluding items) of $1.30 for the second quarter. The EPS was above the market expectation of $1.16. The company brought in $11.76 billion in revenue for the quarter ended June 2019. The revenue was above the consensus estimates of $10.96 billion.
Merck reported better-than-expected quarterly results due to strong demand for its blockbuster cancer immunotherapy Keytruda and vaccine sales. The drugmaker now expects EPS between $4.84 and $4.94 for this year. It was higher than its previous forecast of $4.67 to $4.79.
On the technical front, the current price is above the MA5. The RSI is currently at 53.44% and suggests that the market can move in the upward direction. The %K has crossed the %D from below to the upside at around 36% and suggests that the market can move in the upward direction.
TRADE SUGGESTION- LIMIT BUY AT 83.00 TAKE PROFIT AT 83.80 STOP LOSS AT 82.60