Pfizer, Merck Face Legacy Challenges in Q2 Earnings Reports

Pfizer and Merck are set to report their quarterly earnings on Tuesday. Analysts expect a decline in their bottom lines, with Pfizer's consensus EPS estimate at $0.68, representing a 12.8% year-on-year fall.

Merk is expected to have an even steeper decline, but the companies' new growth bets and strategies may mitigate these losses.

The Keytruda strategy and guidance from Pfizer are being closely watched, as well as Merck's efforts to expand its portfolio. The legacy headwinds facing both companies will also be a major focus in their earnings reports.