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Jun 30, 2023
Merck Q2 2023 Earnings Report
Merck reported a loss per share of $2.35 and a non-GAAP loss per share of $2.06, impacted by charges for the acquisition of Prometheus Biosciences, Inc., lower sales of LAGEVRIO, and unfavorable foreign exchange effects.
Key Takeaways
Merck announced its second-quarter 2023 financial results, revealing robust underlying growth despite a GAAP loss per share of $2.35 and a non-GAAP loss per share of $2.06. These losses were primarily due to a charge for the acquisition of Prometheus Biosciences, Inc. and were further affected by lower sales of LAGEVRIO and unfavorable foreign exchange impacts.
GAAP loss per share was $2.35 for the second quarter of 2023.
Non-GAAP loss per share was $2.06 for the second quarter of 2023.
Both GAAP and non-GAAP loss per share were due to a charge for the acquisition of Prometheus Biosciences, Inc. of $4.02 per share.
Full-year sales outlook to be between $58.6 billion and $59.6 billion.
Merck
Merck
Merck Revenue by Segment
Revenue by Segment
Pharmaceutical Revenue
CapyFin.comAnimal Health Revenue
CapyFin.com Forward Guidance
Merck is raising and narrowing its full-year sales outlook. Merck now expects full-year sales to be between $58.6 billion and $59.6 billion. Merck now expects its full-year non-GAAP EPS to be between $2.95 and $3.05.
Positive Outlook
- Full-year sales to be between $58.6 billion and $59.6 billion.
- Includes approximately $1.0 billion of LAGEVRIO sales.
- Merck continues to experience strong global demand for key growth products.
- Particularly in oncology and vaccines.
- Full-year non-GAAP EPS to be between $2.95 and $3.05.
Challenges Ahead
- Includes a negative impact of foreign exchange of approximately 2 percentage points.
- Non-GAAP effective income tax rate is expected to be between 30.5% and 31.5%.
- Includes an unfavorable impact of approximately 15 percentage points from the non-tax deductible one-time charge for the acquisition of Prometheus.
- Includes a negative impact of foreign exchange of approximately 5 percentage points.
- Excludes acquisition- and divestiture-related costs and costs related to restructuring programs, as well as income and losses from investments in equity securities, and a previously disclosed charge related to settlements with certain plaintiffs in the Zetia antitrust litigation.
Revenue & Expenses
Visualization of income flow from segment revenue to net income