We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Merck (MRK) to Report Q2 Earnings: What's in the Cards?
Read MoreHide Full Article
Merck (MRK - Free Report) will report second-quarter 2022 results on Jul 28 before market open. In the last reported quarter, the company delivered an earnings surprise of 18.23%.
The large drugmaker’s performance beat earnings expectations in three of the trailing four quarters while missing in one. The company delivered a four-quarter earnings surprise of 13.42%, on average.
Merck & Co., Inc. Price, Consensus and EPS Surprise
Merck’s stock has risen 17.5% this year so far compared with an increase of 3.8% for the industry.
Image Source: Zacks Investment Research
Factors to Consider
The strong demand for cancer drugs is likely to have boosted sales growth in the second quarter like in several previous quarters.
In oncology drugs, Keytruda sales are likely to have been driven by continued strong momentum in lung cancer indications and continued uptake in other indications. The Zacks Consensus Estimate for Keytruda’s sales is $5.0 billion. Higher alliance revenues from Lynparza, driven by continued uptake across the multiple approved indications globally may have boosted oncology sales. Please note that Merck markets Lynparza in partnership with AstraZeneca (AZN - Free Report) .
AstraZeneca and Merck formed the profit-sharing deal to co-market Lynparza and Koselugo in July 2017.
AstraZeneca and Merck’s Lynparza is approved for four cancer types, ovarian, breast, prostate and pancreatic. Lynparza is also being evaluated in an earlier-line setting for the approved cancer indications
Alliance revenues from Lenvima may have also boosted oncology sales.
In the hospital specialty portfolio, higher demand due to recovery in surgical procedures may have benefitedsales of Bridion Injection. The Zacks Consensus Estimate for Bridion is $416 million.
Merck and partner Ridgeback Biotherapeutics’ oral antiviral pill to treat COVID-19, Lagevrio (molnupiravir) is likely to have been a key contributor to top-line growth in the second quarter. Lagevrio is expected to generate $5 billion to $5.5 billion in revenues in 2022 of which $3.25 billion was generated during the first quarter. In April, Merck had said that it expects approximately half of the remaining full-year revenues from Lagevrio in the second quarter, which means that Lagevrio revenues in the quarter could be around $1.0 billion.
With regard to the HPV vaccine, Gardasil, ex-U.S. sales are expected to have been driven by strong demand in China and increased supply in the second quarter. The recovery seen in U.S. sales in the first quarter is likely to have continued in the second quarter. The Zacks Consensus Estimate for Gardasil is $1.43 billion.
Meanwhile, the top line is expected to reflect the impact of the loss of U.S. market exclusivity for drugs like Remicade, Noxafil and Zetia and continued pricing pressure for the diabetes franchise (Januvia/Janumet) in the United States.
The Animal Health franchise should continue to see strong sales growth.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Merck time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Earnings ESP: Merck’s Earnings ESP is -0.66% as the Zacks Consensus Estimate of $1.68 per share is higher than the Most Accurate Estimate of $1.67 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
AstraZeneca’s stock has risen 12% this year so far. AstraZeneca topped earnings estimates in two of the last four quarters. AZN has a four-quarter earnings surprise of 1.32%, on average. AstraZeneca is scheduled to release its second-quarter 2022 results on Jul 29.
Bayer (BAYRY - Free Report) has an Earnings ESP of +5.26% and a Zacks Rank #3.
Bayer’s performance has been pretty impressive, with the company exceeding earnings expectations in each of the trailing four quarters. It delivered a four-quarter earnings surprise of 17.71%, on average.
Bayer is scheduled to release its second-quarter 2022 results on Aug 4. The stock is up 8.2% this year so far.
BioNTech (BNTX - Free Report) has an Earnings ESP of +1.99% and a Zacks Rank #2.
BioNTech’s stock has plunged 40.1% in the past year. BioNTech topped earnings estimates in all the last four quarters. BioNTech has a four-quarter earnings surprise of 56.87%, on average.
Image: Bigstock
Merck (MRK) to Report Q2 Earnings: What's in the Cards?
Merck (MRK - Free Report) will report second-quarter 2022 results on Jul 28 before market open. In the last reported quarter, the company delivered an earnings surprise of 18.23%.
The large drugmaker’s performance beat earnings expectations in three of the trailing four quarters while missing in one. The company delivered a four-quarter earnings surprise of 13.42%, on average.
Merck & Co., Inc. Price, Consensus and EPS Surprise
Merck & Co., Inc. price-consensus-eps-surprise-chart | Merck & Co., Inc. Quote
Merck’s stock has risen 17.5% this year so far compared with an increase of 3.8% for the industry.
Image Source: Zacks Investment Research
Factors to Consider
The strong demand for cancer drugs is likely to have boosted sales growth in the second quarter like in several previous quarters.
In oncology drugs, Keytruda sales are likely to have been driven by continued strong momentum in lung cancer indications and continued uptake in other indications. The Zacks Consensus Estimate for Keytruda’s sales is $5.0 billion. Higher alliance revenues from Lynparza, driven by continued uptake across the multiple approved indications globally may have boosted oncology sales. Please note that Merck markets Lynparza in partnership with AstraZeneca (AZN - Free Report) .
AstraZeneca and Merck formed the profit-sharing deal to co-market Lynparza and Koselugo in July 2017.
AstraZeneca and Merck’s Lynparza is approved for four cancer types, ovarian, breast, prostate and pancreatic. Lynparza is also being evaluated in an earlier-line setting for the approved cancer indications
Alliance revenues from Lenvima may have also boosted oncology sales.
In the hospital specialty portfolio, higher demand due to recovery in surgical procedures may have benefitedsales of Bridion Injection. The Zacks Consensus Estimate for Bridion is $416 million.
Merck and partner Ridgeback Biotherapeutics’ oral antiviral pill to treat COVID-19, Lagevrio (molnupiravir) is likely to have been a key contributor to top-line growth in the second quarter. Lagevrio is expected to generate $5 billion to $5.5 billion in revenues in 2022 of which $3.25 billion was generated during the first quarter. In April, Merck had said that it expects approximately half of the remaining full-year revenues from Lagevrio in the second quarter, which means that Lagevrio revenues in the quarter could be around $1.0 billion.
With regard to the HPV vaccine, Gardasil, ex-U.S. sales are expected to have been driven by strong demand in China and increased supply in the second quarter. The recovery seen in U.S. sales in the first quarter is likely to have continued in the second quarter. The Zacks Consensus Estimate for Gardasil is $1.43 billion.
Meanwhile, the top line is expected to reflect the impact of the loss of U.S. market exclusivity for drugs like Remicade, Noxafil and Zetia and continued pricing pressure for the diabetes franchise (Januvia/Janumet) in the United States.
The Animal Health franchise should continue to see strong sales growth.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Merck time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Earnings ESP: Merck’s Earnings ESP is -0.66% as the Zacks Consensus Estimate of $1.68 per share is higher than the Most Accurate Estimate of $1.67 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Merck has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some large drug/biotech stocks that have the right combination of elements to beat on earnings this time around:
AstraZeneca has an Earnings ESP of +1.38% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
AstraZeneca’s stock has risen 12% this year so far. AstraZeneca topped earnings estimates in two of the last four quarters. AZN has a four-quarter earnings surprise of 1.32%, on average. AstraZeneca is scheduled to release its second-quarter 2022 results on Jul 29.
Bayer (BAYRY - Free Report) has an Earnings ESP of +5.26% and a Zacks Rank #3.
Bayer’s performance has been pretty impressive, with the company exceeding earnings expectations in each of the trailing four quarters. It delivered a four-quarter earnings surprise of 17.71%, on average.
Bayer is scheduled to release its second-quarter 2022 results on Aug 4. The stock is up 8.2% this year so far.
BioNTech (BNTX - Free Report) has an Earnings ESP of +1.99% and a Zacks Rank #2.
BioNTech’s stock has plunged 40.1% in the past year. BioNTech topped earnings estimates in all the last four quarters. BioNTech has a four-quarter earnings surprise of 56.87%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.