Home Market News Merck Anticipated to Report Increased Q3 Revenue Despite Decline in COVID-19 Drug Sales

Merck Anticipated to Report Increased Q3 Revenue Despite Decline in COVID-19 Drug Sales

0
Merck Anticipated to Report Increased Q3 Revenue Despite Decline in COVID-19 Drug Sales

In a highly anticipated move, Merck (NYSE:MRK) is set to disclose its Q3 earnings report prior to market open on Thursday, October 26th. Analysts expect the renowned drugmaker to announce higher year-over-year adjusted earnings and revenue.

The average estimate from analysts suggests that Merck will post adjusted earnings of $1.95 per share for this quarter, compared to $1.85 for the same period last year. Furthermore, revenue is projected to reach $15.27 billion, a substantial increase from the $14.96 billion achieved in the year-ago quarter.

Recent data reveals that, within a 90-day span, seven analysts have revised their EPS estimates for Merck upward, while ten have adjusted them downward.

During the previous quarter, Merck reported an adjusted net loss of $2.06 per share, primarily due to a $4.02 per share charge related to its acquisition of Prometheus. However, despite experiencing significant declines in sales of its diabetes drugs Januvia and Janumet, and its COVID-19 drug Lagevrio (molnupiravir), the company’s revenue climbed to $15.04 billion.

Interestingly, in the past two years, Merck has surpassed EPS estimates six times and fallen short twice. On the top-line, it has exceeded expectations four times and fallen short four times.

Merck investors are eager to observe whether the company will adjust its guidance, particularly in light of decreasing Lagevrio sales. During the previous quarter, Merck raised its 2023 sales outlook to $58.6 billion to $59.6 billion, incorporating $1 billion from Lagevrio sales.

Recent market activity includes UBS upgrading Merck to a buy rating, highlighting the underestimation of sales potential for its blockbuster cancer drug Keytruda and HPV vaccine Gardasil by industry experts.

At present, Merck’s stock has experienced a 7.3% decline since the start of the year. However, it has increased by 1.6% in the past five days, based on SA data as of Tuesday evening.