10:11 AM EST, 02/04/2025 (MT Newswires) -- Merck ( MRK ) issued a downbeat full-year outlook overshadowing the pharmaceutical giant's stronger-than-expected fourth-quarter results.

The company anticipates adjusted earnings in a range of $8.88 to $9.03 per share for 2025, while the current consensus on FactSet is for $9.13. The guidance includes a foreign-exchange headwind of about $0.35 a share, as well as a one-time charge of $300 million related to a milestone payment to clinical-stage biotechnology company LaNova. Last year, Merck's ( MRK ) adjusted EPS jumped to $7.65 from $1.51.

Sales are pegged at $64.1 billion to $65.6 billion this year, while the Street is looking for $67.07 billion. The guidance partly reflects the firm's decision to suspend shipments of its human papillomavirus vaccine Gardasil to China through at least the middle of the year. The company's consolidated sales increased 7% to $64.17 billion in 2024.

Merck's ( MRK ) stock declined 11% in Tuesday trade.

For the quarter ended Dec. 31, the company's adjusted EPS soared to $1.72 from $0.03 the year before, topping the average analyst estimate for $1.61. Sales climbed to $15.62 billion from $14.63 billion, ahead of the market's view for $15.48 billion.

"We delivered strong growth in 2024, reflecting demand for our innovative portfolio," Chief Executive Robert Davis said in a statement. "We're continuing to progress our pipeline, advance key clinical programs and augment our pipeline through promising business development."

Pharmaceutical sales added 7% to $14.04 billion buoyed by growth in oncology and cardiovascular, partially offset by declines in diabetes, vaccines, immunology and virology. Revenue for the company's cancer immunotherapy, Keytruda, advanced 19% to $7.84 billion, while Gardasil dropped 17% to $1.55 billion mainly due to lower demand in China. Sales of anti-diabetic medication Januvia tumbled 38% to $487 million due to lower pricing in the US, among other factors.

Animal health revenue moved 9% higher to nearly $1.4 billion. The result was mainly strengthened by higher pricing for the company's livestock and companion animal products, growing 10% and 8%, respectively.

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