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Dec 31, 2019
Merck Q4 2019 Earnings Report
Merck reported an increase in Q4 revenue driven by oncology and animal health, and announced spin-off of Women’s Health, trusted Legacy Brands and Biosimilar products.
Key Takeaways
Merck's Q4 2019 results showed strong growth in pharmaceutical sales, driven by oncology, particularly KEYTRUDA, and animal health, boosted by the Antelliq acquisition. The company's GAAP EPS was $0.92, and non-GAAP EPS was $1.16. Merck also announced its plan to spin off its Women’s Health, trusted Legacy Brands, and Biosimilar products into a new company.
Fourth-quarter pharmaceutical sales increased 7% to $10.5 billion.
KEYTRUDA sales were $3.1 billion for the quarter.
Animal Health sales totaled $1.1 billion, an increase of 8%.
GAAP EPS was $0.92 for the fourth quarter, and non-GAAP EPS was $1.16.
Revenue by Segment
Forward Guidance
Merck anticipates full-year 2020 revenue to be between $48.8 billion and $50.3 billion. Merck expects full-year 2020 GAAP EPS to be between $4.57 and $4.72. Merck expects full-year 2020 non-GAAP EPS to be between $5.62 and $5.77.
Positive Outlook
- Full-year 2020 revenue to be between $48.8 billion and $50.3 billion.
- Full-year 2020 GAAP EPS to be between $4.57 and $4.72.
- Full-year 2020 non-GAAP EPS to be between $5.62 and $5.77.
- Guidance includes a negative impact from foreign exchange of less than 1% on revenue.
- Non-GAAP range excludes acquisition- and divestiture-related costs and costs related to restructuring programs.
Challenges Ahead
- Guidance includes a negative impact from foreign exchange of approximately 1.5% on non-GAAP EPS.
- Uncertainties related to the proposed spin-off of certain businesses.
- Risks related to general industry conditions and competition.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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