New Jersey-based Merck (MRK), is a global research-driven pharmaceutical products company. Well known products in Merck’s portfolio include Remicade, Nasonex, Simponi, Vytorin and Zetia, Januvia and Janumet, Isentress, PegIntron, Maxalt, Cosopt/Trusopt, Temodar, Emend, Keytruda, Cozaar/Hyzaar, Zocor, Proscar, ProQuad, Gardasil, RotaTeq, Zostavax, and NuvaRing.

However, like many of its peers, Merck is facing headwinds in the form of generic competition for several key products. Merck is currently evaluating strategic alternatives for certain parts of its business so that it can streamline operations and focus on certain therapeutic areas. The company sold off its Consumer Care business to Bayer for $14.2 billion in Oct 2014. Meanwhile, Merck acquired hepatitis C virus focused company Idenix in Aug 2014. Merck also acquired Cubist earlier this year. Merck is also focusing on immune-oncology.

MRK has a pretty good earnings track record with the company delivering positive earnings surprises in each of the last three quarters with an average surprise of 4.37% in the last four quarters. Estimate revisions are, however, mostly negative with analysts lowering their estimates for 2015.

Currently, MRK has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings Beat: MRK beat on fourth quarter earnings by two cents. Our consensus called for EPS of 85 cents, and the company reported EPS of 87cents.

Revenue Beat: Merck’s fourth quarter revenues came in at $10.482 billion, slightly above consensus estimates of $10.41 billion. Currency fluctuation hit revenues by 3%.

Guides Below Consensus: Merck expects 2015 earnings in the range of $3.32 - $3.47 per share. This includes a 27 cent negative impact due to currency movement. Guidance fell short of the Zacks Consensus Estimate of $3.54 per share.

Revenues are expected in the range of $38.3 billion - $39.8 billion, including a $2.6 billion negative impact from foreign exchange and about $1 billion reflecting net lost sales from acquisitions and divestitures. Revenue guidance is also below the Zacks Consensus Estimate of $40.2 billion.