Merck & Co Inc (NYSE:MRK, ETR:6MK) has lowered its full-year earnings forecast due to an expected $200 million hit from global tariffs, notably levies between the US and China.
The company now expects 2025 earnings per share (EPS) in the range of $8.82 to $8.97, down from its prior forecast of $8.88 to $9.03.
The updated guidance also reflects a one-time charge of about $0.06 related to its license agreement with Hengrui Pharma.
The company continues to expect full-year revenue in the range of $64.1 to $65.6 billion.
Merck’s first quarter earnings topped estimates, driven by strength in its oncology portfolio and animal health products.
EPS of $2.22 beat estimates of $2.14, and revenue of $15.53 billion was ahead of the consensus $15.33 billion.
Sales of its cancer therapy Keytruda were up 4% year-over-year at $7.21 billion, but short of estimates of $8.39 billion to $7.43 billion.
Gardasil sales fell 41% to $1.33 billion due to weak demand in China and shipment halts. Sales outside China grew 14% year-over-year.
Shares of Merck traded down 1.1% at about $78 on Thursday morning.