Merck Q2 2020 Earnings Report
Key Takeaways
Merck's second-quarter 2020 earnings were affected by the COVID-19 pandemic, with a negative impact on revenue, particularly in pharmaceuticals and animal health. Despite these challenges, the company saw improved business momentum throughout the quarter and remains confident in its long-term growth prospects, driven by its portfolio of medicines, vaccines, and animal health products. Merck is also actively involved in developing vaccines and antivirals to combat the SARS-CoV-2 pandemic.
GAAP EPS was $1.18, while non-GAAP EPS was $1.37, excluding certain costs.
The estimated negative impact of COVID-19 on Merck’s revenue was approximately $1.6 billion.
Pharmaceutical sales decreased by 7% to $9.7 billion, while Animal Health sales totaled $1.1 billion, a decrease of 2%.
Growth in oncology was largely driven by higher sales of KEYTRUDA, which grew 29% to $3.4 billion.
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Forward Guidance
Merck narrowed and raised its full-year 2020 revenue range to be between $47.2 billion and $48.7 billion. Merck narrowed and raised its full-year 2020 GAAP EPS to be between $4.58 and $4.73. Merck narrowed and raised its full-year 2020 non-GAAP EPS to be between $5.63 and $5.78.