Pfizer, Merck, Post-Mergers, Both Beat Q1

Shares of Pfizer (PFE) and Merck (MRK) are both up slightly this morning after the two drug giants comfortably beat Q1 revenue and profit estimates.

Both companies were sprinting from gigantic mergers completed last fall, so this was the first quarter of results with their new partners.

Pfizer shares rose 32 cents, or 2%, to $17.23, while Merck was up 73 cents, or 2%, at $36.

Both companies forecast profit this year that was a bit light of estimates on the Street.

Pfizer sales rose 54% to $16.75 billion, ahead of $16.6 billion expected, yielding a profit per share of 60 cents, 7 cents better than expected.

Pfizer’s specialty care sales of $3.5 billion were up a whopping 141% in the first full quarter of its acquisition of drug maker Wyeth. The company credited Wyeth drugs such as “Premarin” for menopause with leading a 38% rise in biopharmaceutical drugs.

Merck revenue rose 7% to $11.42 billion, beating the $11.2 billion estimate, yielding profit per share of 83 cents, 8 cents ahead of expectations.

Merck touted sales of its drug for type-2 diabetes, Januvia, which saw sales grow 60% outside the U.S. versus 13% at home.

For this year, Pfizer sees $67 billion to $69 billion in revenue, about in line with the average $68.1 billion estimate, and profit per share of $2.10 to $2.20, a tad below the average $2.18 estimate.

Pfizer reduced its 2012 revenue target by $800 million, to $65.2 billion to $67.7 billion, thanks to increased costs from U.S. healthcare legislation.

Merck forecast this year’s revenue per share at $45.4 billion to 46.4 billion, with profit at $3.27 to $3.41 per share, which in line with the average $45.9 billion on the top line but below analysts’ $3.40 profit estimate.

This was the first full quarter for Merck after acquiring Shering Plough in November. Management reiterated a forecast for single-digit growth in earnings through 2013.