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Merck (MRK) Q2 Earnings & Sales Top on Strong Keytruda Sales
July 28, 2017

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New Jersey-based Merck & Co. Inc. (MRK - Free Report) is a research-driven pharmaceutical products company. Well known products in Merck’s portfolio include Remicade, Nasonex, Simponi, Vytorin and Zetia, Januvia and Janumet, Isentress, PegIntron, Maxalt, Cosopt/Trusopt, Temodar, Emend, Keytruda, Cozaar/Hyzaar, Zocor, Proscar, ProQuad, Gardasil, RotaTeq, Zostavax and NuvaRing.

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 has a pretty good earnings track record with the company delivering positive earnings surprises in each of the last four quarters with an average surprise of 4.36%. Estimate movement has been static over the past 60 days.

Currently, Merck has a Zacks Rank #2 (Buy), 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 $1.01 while our consensus called for EPS of 87 cents.

Revenues Beat: Revenues in the reported quarter also came above expectations. Merck posted revenues of $9.93 billion above our consensus estimate of $9.79 billion. Keytruda brought in sales of $881 million in second-quarter 2017, up 51% sequentially and 180% year over year.

2017 Outlook: Merck maintained its 2017 adjusted earnings guidance while raising its sales outlook marginally. The company expects adjusted earnings in the range of $3.76–$3.88 including approximately 1.0% negative foreign exchange impact (versus 1.5% previously).

Revenues are expected in the range of $39.4 billion – $40.4 billion, compared with the earlier forecast of $39.1–$40.3 billion, including negative currency impact of approximately 1.0% (versus 1.5% previously).

Stock Price Impact: Shares were up 1% in pre-market trading.

Merck & Company, Inc. Price and EPS Surprise


Merck & Company, Inc. Price and EPS Surprise | Merck & Company, Inc. Quote

Check back later for our full write up on this MRK earnings report!

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