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Mar 31, 2020

Merck Q1 2020 Earnings Report

Merck's financial results for Q1 2020 reflected strong demand for innovative products and continued commercial and clinical execution.

Key Takeaways

Merck's Q1 2020 showed a strong performance driven by oncology and vaccines, with revenue increasing by 10% to $10.7 billion. GAAP EPS was $1.26, and non-GAAP EPS was $1.50. The company anticipates an unfavorable impact to revenue of approximately $2.1 billion for the full year due to COVID-19.

First-quarter pharmaceutical sales increased 10% to $10.7 billion.

KEYTRUDA sales grew 45% to $3.3 billion.

Animal Health sales totaled $1.2 billion, an increase of 18%.

GAAP EPS was $1.26 for the first quarter of 2020, while non-GAAP EPS was $1.50.

Total Revenue
$12.1B
Previous year: $10.8B
+11.5%
EPS
$1.5
Previous year: $1.22
+23.0%
KEYTRUDA Sales
$3.3B
Gross Profit
$8.75B
Previous year: $7.76B
+12.6%
Cash and Equivalents
$7.43B
Previous year: $8.08B
-8.1%
Total Assets
$84.9B
Previous year: $82.4B
+3.1%

Merck

Merck

Merck Revenue by Segment

Forward Guidance

Merck lowered its full-year 2020 revenue range to be between $46.1 billion and $48.1 billion. Merck lowered its full-year 2020 GAAP EPS to be between $4.12 and $4.32. Merck lowered its full-year 2020 non-GAAP EPS to be between $5.17 and $5.37.