Is MRK's Q3 2024 EPS trend sustainable?

**Merck's Q3 2024 EPS trend is not currently forming a sustainable pattern.** Here's an analysis based on the latest data:

1. **Recent Performance**: Merck's EPS for Q3 2024 was $1.24, which is below the EPS of $1.87 projected by analysts for the same period. This indicates that the company's actual performance fell short of expectations.

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|MRK|MRK.N|Merck|2023 Q4||-0.48|169|
|MRK|MRK.N|Merck|2024 Q1|68.46846846846847|1.87|169|
|MRK|MRK.N|Merck|2024 Q2|191.06382978723403|2.14|169|
|MRK|MRK.N|Merck|2024 Q3|-33.333333333333336|1.24|169|

2. **Trend Analysis**: The EPS of $1.24 for Q3 2024 represents a decrease from the EPS of $2.13 in the same period of the previous year. This decline suggests that the EPS trend is not sustainable in the sense that it is decreasing over time.
3. **Market Expectations**: Analysts are expecting an EPS of $1.77 for the upcoming quarter, which is higher than the EPS of $1.24 reported for Q3 2024. This implies that the market does not currently expect the EPS trend to be sustainable at the current level.
4. **Free Cash Flow**: Merck's free cash flow for Q3 2024 was $8.51 billion. While this is a substantial amount, it is important to note that free cash flow alone does not guarantee the sustainability of EPS. Other financial metrics and trends would also need to be considered.

|code|Ticker|Name|Date|Free Cash Flow|Investing Cash Flow|Operating Cash Flow|Financing Cash Flow|market_code|
|---|---|---|---|---|---|---|---|---|
|MRK|MRK.N|Merck|2024 Q1|8.81500147E9|-1.376E9|3.09E9|-2.814E9|169|
|MRK|MRK.N|Merck|2024 Q2|5.1300005E9|-1.069E9|5.637E9|1.216E9|169|
|MRK|MRK.N|Merck|2024 Q3|1.2341007478E10|-3.845E9|9.291E9|-2.425E9|169|

In conclusion, while Merck's Q3 2024 EPS of $1.24 is a significant figure, the trend is not currently forming a sustainable pattern based on the available data. The decline from the previous year's EPS and the discrepancy with analysts' expectations suggest that the company's performance may face challenges in the near term.