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What's in the Cards for Merck KGaA (MKGAF) in Q4 Earnings?
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Merck KGaA (MKGAF - Free Report) is scheduled to report fourth-quarter 2017 results on Mar 8.
Merck’s shares have declined 12.8% in the past year against the industry’s gain of 0.2%.
The company reports financial numbers under three business sectors — Healthcare, Life Science and Performance Materials.
Merck’s revenues were driven by sales growth in its Healthcare and Life Science segments in the third quarter. We expect this positive trend to continue in the upcoming quarterly results. Meanwhile, the company is streamlining Healthcare business to focus on its pipeline of innovative medicines.
During the first half of 2017, the company received an approval for Bavencio for treatment of metastatic Merkel cell carcinoma (mMCC) and advanced bladder cancer in the United States. Moreover, the drug was approved in the EU and Japan for treating mMCC in September 2017.
During the period to be , Merck’s multiple sclerosis drug, Mavenclad, was approved in Australia and Canada following its approval in Europe in the third quarter.
The company continues to develop Bavencio in partnership with Pfizer Inc. (PFE - Free Report) for several cancer indications. However, the drug failed in a phase III study, conducted to evaluate it for the treatment of gastric cancer in the third-line setting.
Sales of three key drugs — Rebif, Erbitux and Gonal-f — are expected to be lower in fourth-quarter 2017 results. This downside is likely to be caused by persistent competitive pressure and price reduction. Moreover, unfavorable currency movement is anticipated to dent the top line.
Additionally, operating expenses increased during the first nine months of 2017 due to product launches and higher pipeline development cost. Expenses are estimated to rise as the company focuses on developing an innovative pipeline, the launch of Bavencio in new geographies as well as Mavenclad.
We expect management to shed light on progress and commercialization plans for Bavencio on the earnings call. The company is likely to provide updates on its strategic plans.
Here are a couple of healthcare stocks that you may want to consider, as our model shows that these have the right combination of elements — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to deliver an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Celldex Therapeutics, Inc. (CLDX - Free Report) is scheduled to release results on Mar 7. The Zacks #3 Ranked company has an Earnings ESP of +18.28%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
What's in the Cards for Merck KGaA (MKGAF) in Q4 Earnings?
Merck KGaA (MKGAF - Free Report) is scheduled to report fourth-quarter 2017 results on Mar 8.
Merck’s shares have declined 12.8% in the past year against the industry’s gain of 0.2%.
The company reports financial numbers under three business sectors — Healthcare, Life Science and Performance Materials.
Merck’s revenues were driven by sales growth in its Healthcare and Life Science segments in the third quarter. We expect this positive trend to continue in the upcoming quarterly results. Meanwhile, the company is streamlining Healthcare business to focus on its pipeline of innovative medicines.
During the first half of 2017, the company received an approval for Bavencio for treatment of metastatic Merkel cell carcinoma (mMCC) and advanced bladder cancer in the United States. Moreover, the drug was approved in the EU and Japan for treating mMCC in September 2017.
During the period to be , Merck’s multiple sclerosis drug, Mavenclad, was approved in Australia and Canada following its approval in Europe in the third quarter.
The company continues to develop Bavencio in partnership with Pfizer Inc. (PFE - Free Report) for several cancer indications. However, the drug failed in a phase III study, conducted to evaluate it for the treatment of gastric cancer in the third-line setting.
Sales of three key drugs — Rebif, Erbitux and Gonal-f — are expected to be lower in fourth-quarter 2017 results. This downside is likely to be caused by persistent competitive pressure and price reduction. Moreover, unfavorable currency movement is anticipated to dent the top line.
Additionally, operating expenses increased during the first nine months of 2017 due to product launches and higher pipeline development cost. Expenses are estimated to rise as the company focuses on developing an innovative pipeline, the launch of Bavencio in new geographies as well as Mavenclad.
We expect management to shed light on progress and commercialization plans for Bavencio on the earnings call. The company is likely to provide updates on its strategic plans.
Merck KGaA Price and EPS Surprise
Merck KGaA Price and EPS Surprise | Merck KGaA Quote
Stocks that Warrant a Look
Here are a couple of healthcare stocks that you may want to consider, as our model shows that these have the right combination of elements — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to deliver an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Gemphire Therapeutics Inc. is expected to release results on Mar 21. The company has an Earnings ESP of +24.74% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Celldex Therapeutics, Inc. (CLDX - Free Report) is scheduled to release results on Mar 7. The Zacks #3 Ranked company has an Earnings ESP of +18.28%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>