Merck Q3 2022 Earnings Report
Key Takeaways
Merck reported strong Q3 2022 results, with revenue increasing by 13% to $13.0 billion in Pharmaceutical sales and Non-GAAP EPS of $1.85. The growth was primarily driven by Keytruda and Gardasil sales.
Third-quarter pharmaceutical sales increased 13% to $13.0 billion.
Growth in oncology was largely driven by higher sales of KEYTRUDA, which rose 20% to $5.4 billion in the quarter.
Third-quarter GARDASIL/GARDASIL 9 sales grew 15% to $2.3 billion, primarily driven by strong demand outside of the U.S., particularly in China.
Non-GAAP EPS was $1.85 for the third quarter of 2022 compared to $1.78 for the third quarter of 2021.
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Merck Revenue by Segment
Forward Guidance
Merck is raising and narrowing its full-year outlook for sales and non-GAAP EPS, despite a negative impact from foreign exchange.
Positive Outlook
- Merck expects sales growth of 20% to 21% in 2022, with full-year sales estimated to be between $58.5 billion and $59.0 billion.
- Excluding LAGEVRIO, Merck expects sales growth of approximately 12% for full-year 2022.
- Merck expects its full-year non-GAAP effective income tax rate to be approximately 14%.
- Merck is raising and narrowing its expected full-year 2022 non-GAAP EPS to be between $7.32 and $7.37.
- The company is narrowing its expected full year sales range of LAGEVRIO to be between $5.2 billion and $5.4 billion.
Challenges Ahead
- Merck continues to experience strong global momentum across its key pillars of growth, particularly in oncology and vaccines. As a result, Merck is raising and narrowing its full-year outlook for sales and non-GAAP EPS, despite a negative impact from foreign exchange.
- At mid-October 2022 exchange rates, Merck expects sales growth of 20% to 21% in 2022, with full-year sales estimated to be between $58.5 billion and $59.0 billion, including a negative impact from foreign exchange of approximately 4%, including a less than 1% incremental negative impact from prior sales outlook.
- Merck is lowering its expected full-year 2022 GAAP EPS to be between $5.68 and $5.73.
- Merck is raising and narrowing its expected full-year 2022 non-GAAP EPS to be between $7.32 and $7.37, including a negative impact from foreign exchange of approximately 4% at mid-October exchange rates.
- Operational strength of approximately $0.20 is partially offset by the following negative impacts, which were not reflected previously in the outlook: The non-GAAP range excludes acquisition- and divestiture-related costs and costs related to restructuring programs as well as income and losses from investments in equity securities.