Merck beats earnings expectations, raises sales outlook on strong demand for top drugs like Keytruda
Merck on Tuesday reported second-quarter revenue and adjusted earnings that topped Wall Street's expectations as it saw strong sales from its blockbuster cancer drug Keytruda as well as other treatments in its oncology and vaccines portfolios and a newly launched cardiovascular drug.
The pharmaceutical giant also raised its full-year sales forecast to a range of $63.4 billion to $64.4 billion on increased demand for key products, particularly its oncology treatments. That's only slightly higher than the $63.1 billion to $64.3 billion guidance the company provided in April.
Merck lowered its adjusted profit guidance to a range of $7.94 and $8.04 per share, from a previous forecast of $8.53 to 8.65 per share. That updated outlook reflects one-time charges of 26 cents and 51 cents per share for the company's acquisitions of Harpoon Therapeutics and EyeBio, respectively, Merck said.
Here's what Merck reported for the second quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
The drugmaker posted net income of $5.46 billion, or $2.14 per share, for the second quarter. That compares with a net loss of $5.98 billion, or $2.35 per share, during the year-earlier period, which included a charge related to its acquisition of Prometheus Biosciences.
Excluding acquisition and restructuring costs, the company earned $2.28 per share for the three-month period.
Merck reported $16.11 billion in revenue for the quarter, up 7% from the same period a year ago.
The results come as Merck prepares to offset losses from Keytruda's patent expiration in 2028 with a handful of new deals under its belt and key drug launches.
That includes Winrevair, a medication approved in the U.S. in March to treat a