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Sep 30, 2023
Merck Q3 2023 Earnings Report
Merck reported strong third-quarter results, driven by commitment to innovation and strategic investments.
Key Takeaways
Merck announced its third-quarter 2023 financial results, with GAAP EPS at $1.86 and non-GAAP EPS at $2.13. The increases in EPS were primarily due to operational strength, and were partially offset by the unfavorable impact of foreign exchange.
GAAP EPS was $1.86 for the third quarter of 2023.
Non-GAAP EPS was $2.13 for the third quarter of 2023.
R&D expenses decreased due to charges recorded in 2022 for intangible asset impairments and collaboration agreements.
Merck is raising and narrowing its full-year sales outlook, now expecting between $59.7 billion and $60.2 billion.
Forward Guidance
Merck is raising and narrowing its full-year sales outlook. Merck now expects full-year sales to be between $59.7 billion and $60.2 billion, including a negative impact of foreign exchange of approximately 2 percentage points, at mid-October 2023 exchange rates. This full-year outlook includes approximately $1.3 billion of LAGEVRIO sales. Merck’s full-year non-GAAP effective income tax rate is expected to be between 39.0% and 40.0%, which includes an approximate 24.5 percentage point negative impact related to business development activity. Merck now expects its full-year non-GAAP EPS to be between $1.33 and $1.38, including a negative impact of foreign exchange of approximately 6 percentage points, at mid-October 2023 exchange rates.
Positive Outlook
- Strong sustained demand for key growth products, particularly in oncology and vaccines.
- Raising and narrowing its full-year sales outlook.
- Full-year outlook includes approximately $1.3 billion of LAGEVRIO sales.
Challenges Ahead
- Negative impact of foreign exchange of approximately 2 percentage points on full-year sales.
- Full-year non-GAAP effective income tax rate includes an approximate 24.5 percentage point negative impact related to business development activity.
- Negative impact of foreign exchange of approximately 6 percentage points on full-year non-GAAP EPS.
Historical Earnings Impact
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