Merck Q2 Results Beat Estimates; Cuts FY24 Adj. EPS View, Lifts Sales Forecast

(RTTNews) - Drug major Merck & Co., Inc. (MRK) reported Tuesday a profit in its second quarter, compared to prior year's profit on higher sales. Adjusted earnings and top line beat market estimates.

Looking ahead for fiscal 2024, the company trimmed adjusted earnings view, but raised sales forecast.

In pre-market activity on the NYSE, Merck shares were down around 1.02 percent to trade at $126.48.

The company's second-quarter net income was $5.46 billion, compared to last year's loss of $5.98 billion. Earnings per share were $2.14, compared to a loss of $2.35 in the prior year.

Adjusted net income was $5.81 billion or $2.28 per share, compared to loss of $5.22 billion or $2.06 per share last year.

Analysts on average expected the company to report earnings of $2.15 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Sales for the quarter grew 7 percent to $16.11 billion from $15.04 billion a year ago, while the Street was looking for sales of $15.84 billion.

On a constant currency basis, sales grew 11 percent.

Looking ahead for fiscal 2024, the company now expects adjusted earnings per share to be between $7.94 and $8.04, lower than previous estimate of $8.53 to $8.65. The outlook reflects negative impact from one-time charge of around $1.3 billion, or $0.51 per share, for the acquisition of EyeBio.

Further, the company raised and narrowed expected worldwide sales range to be between $63.4 billion and $64.4 billion from previous estimate of $63.1 billion to $64.3 billion.

The analysts estimate earnings of $8.16 per share on sales of $64.34 billion for the year.

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.