- Merck & Co has revised its full-year adjusted EPS forecast to a range of $8.82 to $8.97, slightly lower than its previous range of $8.88 to $9.03.
- The company expects an adjusted gross margin of about 82%, down from a previous estimate of 82.5%.
- Full-year sales guidance remains at $64.1 billion to $65.6 billion, with the consensus estimate at $65.1 billion.
- For the first quarter, Merck reported an adjusted EPS of $2.22, up from $2.07 year-over-year and beating the estimate of $2.13.
- First-quarter sales totaled $15.53 billion, representing a 1.6% decline year-over-year, but exceeding the estimate of $15.33 billion.
- Lagevrio revenue significantly decreased by 71% year-over-year to $102 million, below the estimate of $184.8 million.
- Keytruda revenue rose by 3.7% year-over-year to $7.21 billion, but did not meet the estimate of $7.45 billion.
- Lynparza revenue increased by 6.8% year-over-year to $312 million, above the estimate of $307.6 million.
- Gardasil revenue dropped by 41% year-over-year to $1.33 billion, aligning closely with the estimate of $1.32 billion; the decline is primarily attributed to lower demand in China.
- Proquad/MMR-II/Varivax revenue fell by 5.4% year-over-year to $539 million, slightly exceeding the estimate of $520.8 million.
- Lenvima revenue slightly increased by 1.2% year-over-year to $258 million, surpassing the estimate of $243.8 million.
- Animal Health sales grew by 5.1% year-over-year to $1.59 billion, marginally above the estimate of $1.58 billion.
- Bridion revenue grew by 0.2% year-over-year to $441 million, slightly higher than the estimate of $437.9 million.
- Adjusted SG&A expense stood at $2.5 billion, slightly above the estimate of $2.47 billion.
- Adjusted R&D expense was $3.6 billion, slightly exceeding the estimate of $3.59 billion.
- The company’s outlook revision considers a negative impact from a roughly $0.06 per share charge related to a Hengrui Pharma license agreement.
- The guidance includes effects from tariffs imposed by the US and foreign governments, with significant implications concerning China.
- The outlook accounts for approximately $200 million in extra costs due to current tariffs.
- Guidance continues to include a projected one-time charge of $300 million, or about $0.09 per share, associated with the payment to LaNova for the technology transfer of MK-2010.
Merck & Co on Smartkarma
Analysts on Smartkarma are closely following Merck & Co‘s performance. Baptista Research provides insights on the company’s financials, highlighting a 7% revenue growth to $15.6 billion in the fourth quarter of 2024. Strong demand for KEYTRUDA in oncology and Animal Health segments supported this growth, although challenges were faced with GARDASIL, particularly in the Chinese market.
Furthermore, Baptista Research analyzes the expansion of Merck & Co‘s oncology portfolio through developments with KEYTRUDA and strategic partnerships. The company showed a 4% revenue growth in the third quarter, driven by the global uptake of KEYTRUDA and successful product launches. The research firm also aims to evaluate factors influencing the company’s future stock price and conducts a valuation using Discounted Cash Flow methodology. Business Breakdowns delves into Merck’s success with blockbuster drug KEYTRUDA, emphasizing the company’s commitment to innovation and navigating challenges in the pharmaceutical industry.
A look at Merck & Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Merck & Co. Inc., a global health care company, shows a promising long-term outlook based on the Smartkarma Smart Scores. With high scores in Dividend, Growth, and Resilience, the company demonstrates strong potential for future performance. A solid Dividend score of 4 indicates its ability to provide consistent returns to investors, while both the Growth and Resilience scores of 4 point towards sustained expansion and stability.
Although Merck & Co. falls slightly short in Value and Momentum scores, the overall positive outlook highlighted by the Smart Scores suggests a favorable investment opportunity. As a company known for delivering health solutions through various sectors, including prescription medicines, vaccines, and animal health, Merck & Co. is positioned well for continued growth and success in the health care industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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