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Merck
🇺🇸 NYSE:MRK
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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.

Total Revenue
$15B
Previous year: $14.6B
+3.0%
EPS
-$2.06
Previous year: $1.87
-210.2%
KEYTRUDA Sales
$6.28B
Previous year: $5.3B
+18.4%
GARDASIL Sales
$987M
Previous year: $1.7B
-41.9%
Gross Profit
$11B
Previous year: $10.2B
+8.1%
Cash and Equivalents
$5.66B
Previous year: $9.68B
-41.5%
Free Cash Flow
$2.74B
Total Assets
$104B
Previous year: $107B
-2.5%

Merck

Merck

Merck Revenue by Segment

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

Company Overview

Full financial data and analysis

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