NEW YORK (TheStreet) -- Merck (MRK) - Get Report stock is advancing by 2.02% to $53.96 in pre-market trading on Tuesday, after the company reported its 2015 third quarter financial results and raised its full-year earnings guidance amid strong sales in diabetes and oncology.
The drug maker reported earnings of 96 cents per share, up from 90 cents per share for the year ago period.
Revenue declined by 4.6% year over year, to $10.07 billion from $10.56 billion for the 2014 third quarter.
Analysts were expecting the company to earn 91 cents per share on revenue of $10.08 billion.
Merck raised its 2015 full-year earnings guidance to a range between $3.55 per share and $3.60 per share, up from the prior range between $3.45 per share and $3.55 per share. Analysts had forecast for $3.51 per share, according to Reuters.
"Our solid results this quarter demonstrate that our focused strategy, which aims to drive future growth, as well as value for patients, society and shareholders, is working," CEO Kenneth C. Frazier said in a statement. "The evolving market, economic and political dynamics of global health care increasingly underscore that the ability to provide high-value innovation is what will distinguish successful companies going forward."
Separately, TheStreet Ratings team rates MERCK & CO as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
We rate MERCK & CO (MRK) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, reasonable valuation levels, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: MRK