Merck Q1 2024 Earnings Report
Key Takeaways
Merck reported a strong start to 2024, driven by innovation and a broad commercial portfolio. Key therapeutic areas experienced significant growth, and the company launched WINREVAIR in the U.S. The company is raising and narrowing its full-year outlook ranges for sales and non-GAAP EPS.
GAAP EPS was $1.87, including a $0.26 charge for the Harpoon Therapeutics acquisition.
Non-GAAP EPS was $2.07, also including the $0.26 charge for the Harpoon acquisition.
Merck received FDA approval for WINREVAIR for pulmonary arterial hypertension.
The company is initiating a Phase 3 trial for MK-1084 in combination with KEYTRUDA for metastatic NSCLC.
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Merck Revenue by Segment
Forward Guidance
Merck is raising and narrowing its full-year outlook ranges for sales and non-GAAP EPS.
Positive Outlook
- Full-year 2024 sales to be between $63.1 billion and $64.3 billion.
- Full-year non-GAAP EPS to be between $8.53 and $8.65.
- Strong global demand for oncology and vaccine products.
- Inflation-related price increases offset devaluation of Argentine peso.
- Non-GAAP effective income tax rate to be between 14.5% and 15.5%.
Challenges Ahead
- Includes a charge of $0.26 per share for the acquisition of Harpoon.
- Negative impact of foreign exchange of approximately 3% on sales.
- Negative impact of foreign exchange of approximately $0.30 per share on EPS.
- Outlook does not assume additional significant potential business development transactions.
- Devaluation of the Argentine peso.
Revenue & Expenses
Visualization of income flow from segment revenue to net income