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New Jersey-based Merck & Co. Inc. (MRK - Free Report) 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, Emend, Keytruda, Cozaar/Hyzaar, Zocor, ProQuad, Gardasil, Zostavax and others.
However, like many of its peers, Merck is facing headwinds in the form of generic competition for several key products. 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 Pharmaceuticals in Aug 2014 and Cubist Pharmaceuticals in 2015. Merck is also focusing on immuno-oncology.
Merck’s performance has been pretty impressive, with the company exceeding earnings expectations in all the trailing four quarters. The average positive earnings surprise over the last four quarters is 8.55%
Estimates have declined slightly over the past 60 days.
Currently, Merck 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: Merck surpassed earnings expectations. The company reported EPS of $1.06 while our consensus called for EPS of $1.03. Earnings rose 5% year over year
Revenues Beat: Revenues in the reported quarter also came above expectations. Merck posted revenues of $10.47 billion also above our consensus estimate of $10.32 billion.
Key Stats: The Pharmaceutical segment generated revenues of $9.28 billion, up 6% (up 3% excluding Fx impact) year over year.
Keytruda, the largest product in the Merck portfolio, brought in sales of $1.67 billion in second-quarter 2018, up 13.8% sequentially and 89% year over year.
2018 Outlook: Merck raised its earnings guidance while tightened the sales expectations for 2018.
Merck raised its adjusted earnings guidance to a range of $4.22–$4.30 from the previous guidance of $4.16–$4.28, despite more onerous currency headwind expectations.
The adjusted earnings guidance includes approximately 1% negative impact from currency fluctuation versus a similar positive impact expected previously.
Merck tightened its outlook for 2018 revenues to a range of $42.0 billion – $42.8 billion from $41.8 billion – $43.0 billion.
Stock Price Impact: Shares were up 1.5% in pre-market trading.
Check back later for our full write up on this MRK earnings report!
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Image: Bigstock
Merck (MRK) Tops on Q2 Earnings & Sales, Stock Up
New Jersey-based Merck & Co. Inc. (MRK - Free Report) 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, Emend, Keytruda, Cozaar/Hyzaar, Zocor, ProQuad, Gardasil, Zostavax and others.
However, like many of its peers, Merck is facing headwinds in the form of generic competition for several key products. 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 Pharmaceuticals in Aug 2014 and Cubist Pharmaceuticals in 2015. Merck is also focusing on immuno-oncology.
Merck’s performance has been pretty impressive, with the company exceeding earnings expectations in all the trailing four quarters. The average positive earnings surprise over the last four quarters is 8.55%
Estimates have declined slightly over the past 60 days.
Currently, Merck 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: Merck surpassed earnings expectations. The company reported EPS of $1.06 while our consensus called for EPS of $1.03. Earnings rose 5% year over year
Revenues Beat: Revenues in the reported quarter also came above expectations. Merck posted revenues of $10.47 billion also above our consensus estimate of $10.32 billion.
Key Stats: The Pharmaceutical segment generated revenues of $9.28 billion, up 6% (up 3% excluding Fx impact) year over year.
Keytruda, the largest product in the Merck portfolio, brought in sales of $1.67 billion in second-quarter 2018, up 13.8% sequentially and 89% year over year.
2018 Outlook: Merck raised its earnings guidance while tightened the sales expectations for 2018.
Merck raised its adjusted earnings guidance to a range of $4.22–$4.30 from the previous guidance of $4.16–$4.28, despite more onerous currency headwind expectations.
The adjusted earnings guidance includes approximately 1% negative impact from currency fluctuation versus a similar positive impact expected previously.
Merck tightened its outlook for 2018 revenues to a range of $42.0 billion – $42.8 billion from $41.8 billion – $43.0 billion.
Stock Price Impact: Shares were up 1.5% in pre-market trading.
Check back later for our full write up on this MRK earnings report!
Merck & Co., Inc. Price and Consensus
Merck & Co., Inc. Price and Consensus | Merck & Co., Inc. Quote
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>