Merck & Co. Inc. (NYSE: MRK) announced its second-quarter earnings on Tuesday, delivering an impressive performance despite challenges in the market. The company successfully navigated through the decline in sales of its COVID treatment Lagevrio and posted better-than-expected results.
Financial Highlights
- Net Loss: Merck reported a net loss of $4.975 billion, or $2.35 per share, for the quarter. This compares to income of $3.944 billion, or $1.55 per share, in the same period last year.
- Adjusted Loss Per Share: The company’s adjusted loss per share was $2.06, narrower than the loss of $2.18 anticipated by FactSet analysts.
- Sales Growth: Merck’s sales increased by 3% to reach $15.035 billion, up from $14.593 billion in the previous year. This surpassed the FactSet consensus of $14.442 billion.
- Keytruda and Gardasil Perform Well: Sales of Merck’s cancer treatment Keytruda rose by an impressive 19% to $6.3 billion. Additionally, the HPV deterrent Gardasil witnessed a notable growth of 47% and generated $2.5 billion in sales.
- Lagevrio Sales Decline: Sales of Lagevrio experienced a significant decline of 83% to $203 million.
Positive Outlook
Despite uncertainties in the market, Merck remains cautiously optimistic and is confident in its ability to deliver strong results for the full year. The company anticipates full-year sales in the range of $58.6 billion to $59.6 billion, slightly higher than the FactSet analysts’ estimate of $58.7 billion.
Moreover, Merck expects its full-year adjusted earnings per share (EPS) to be in the range of $2.95 to $3.05, compared to the FactSet consensus of $2.90.
Stock Performance
While the stock rose 1.6% in premarket trading, it has experienced a decline of 3.9% year to date. In contrast, the S&P 500 index has gained an impressive 19.5% during the same period.
Merck’s ability to navigate through challenges and deliver strong results showcases its resilience and commitment to driving growth in the pharmaceutical industry.
