Merck Raises EPS Outlook After Q2 Earnings

Health and Healthcare

Published: July 29, 2016 8:20 am

Last Updated: January 13, 2020 5:08 am

Drug giant Merck & Co. Inc. (NYSE: MRK) reported second-quarter 2016 results before markets opened Friday. The company reported quarterly adjusted diluted earnings per share (EPS) of $0.93 and revenues of $9.84 billion. In the same period a year ago, Merck reported EPS of $0.86 on revenues of $9.79 billion. Second-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.91 and $9.78 billion in revenues.

Pharmaceutical sales rose 2% year over year, irrespective of currency exchange effects. Net income on a GAAP basis totaled $1.21 billion, while non-GAAP net income totaled $687 million. Non-GAAP net income excludes the impacts of $1.12 billion in expenses related to acquisitions and divestitures, $18 million in marketing and administrative expenses, and $207 million in R&D costs.

In its financial outlook statement, Merck raised the lower end of its full-year adjusted EPS estimate from $3.60 to $3.67. The top end of the range rose from $3.75 to $3.77. Revenue guidance remained at $39.1 billion to $40.1 billion.

Consensus estimates for the third quarter call for EPS of $0.98 and revenues of $10.07 billion. For the full year, analysts are looking for EPS of $3.72 and revenues of $39.49 billion.

Chairman and CEO Kenneth C. Frazier said:

Our results this quarter reflect our strategic focus on key launches, including KEYTRUDA and ZEPATIER, as well as our priority inline programs. We remain committed to advancing our pipeline, delivering a balanced and differentiated portfolio, and achieving long-term, sustainable growth.

Since the beginning of the year, Merck stock trades up about 10.6%, well above the Dow Jones Industrial Average gain of 5.9%. Over the past 12 months, however, Merck stock trades down about 0.2%, compared with a Dow gain of 4%.

Shares of Merck’s stock traded up nearly 1.5% in Friday’s premarket, at $59.30 in a 52-week range of $45.69 to $60.07. Thomson Reuters had a 12-month price target of $61.90 before the report.

Travel Cards Are Getting Too Good To Ignore

Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.

We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.

It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.

We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.