NYSE$MRK

Merck & Co. · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Merck successfully delivered across key strategic priorities, achieving strong top- and bottom-line growth.

Merck reported strong first-quarter results, driven by clinical advancements and commercial execution. Total sales increased, led by oncology, vaccines, and hospital acute care products, with significant contributions from KEYTRUDA and GARDASIL. The company is raising and narrowing its full-year guidance for revenues and EPS.

  • First-quarter pharmaceutical sales increased 53% to $14.1 billion.
  • LAGEVRIO sales totaled $3.2 billion for the first quarter.
  • KEYTRUDA sales rose 23% to $4.8 billion.
  • GARDASIL and GARDASIL 9 sales grew 59% to $1.5 billion.

Headline financials

Total Revenue

$15.9B

Previous: $12.1B+31.6%
EPS (adj)

$2.14

Previous: $1.40+52.9%
KEYTRUDA sales

$4.8B

Previous: $3.9B+23.1%
GARDASIL sales

$1.5B

Previous: $917M+63.6%
Free Cash Flow

$4.31B

Previous: $3.18B+35.6%
Net Income

$4.31B

Previous: $3.18B+35.6%
Operating Income

$5.57B

Previous: $3.01B+84.8%
Gross Profit

$10.5B

Previous: $8.41B+25.1%
Cash & Equivalents

$8.56B

Previous: $6.98B+22.6%
Total Assets

$107B

Previous: $90.8B+17.4%
Stock-Based Comp

$120M

Previous: $111M+8.1%

Revenue & EPS history

Merck · Revenue · Quarterly

$15.9B

Q1 2022+31.6%vs Q1 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Merck · $15.6B total across 2 segments · Q1 2022

  • Pharmaceutical
    $14.1B+31.8%
  • Animal Health
    $1.5B+7.1%

Forward guidance

Merck is raising and narrowing its full-year guidance for revenues and EPS. The company now expects sales growth of 17% to 19% in 2022, with full-year revenue estimated to be between $56.9 billion and $58.1 billion. Full-year 2022 GAAP EPS is expected to be between $5.90 and $6.02, and non-GAAP EPS is expected to be between $7.24 and $7.36.

Tailwinds

  • Strong global underlying demand across key growth pillars.
  • Sales growth expected between 17% and 19%.
  • Full-year revenue estimated between $56.9 billion and $58.1 billion.
  • Full-year GAAP EPS range raised to $5.90 to $6.02.
  • Full-year non-GAAP EPS range raised to $7.24 to $7.36.

Headwinds

  • Negative impact from foreign exchange of just over 2% on revenues.
  • Negative impact from foreign exchange of approximately 2%, or $0.11, on non-GAAP EPS.
  • Includes expected sales of $5.0 billion to $5.5 billion from LAGEVRIO.
  • LAGEVRIO profits are shared equally with Ridgeback, impacting cost of sales.
  • The financial outlook does not assume any significant expenses or charges from transactions that would have been previously excluded from non-GAAP results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.4%

Avg return

Earnings day

-0.4%

Avg return

5 days after

+1.4%

Avg return

30 days after

51%

37 / 73 earnings

Positive

+8.0%

Q3 2021

Best reaction

-11.7%

Q3 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.0%+2.0%+6.9%
Q4 2025+2.2%+7.6%+2.4%
Q3 2025-1.0%-3.1%+21.1%
Q2 2025+1.2%+1.0%+5.2%
Q1 2025+1.5%+7.6%-1.5%
Q4 2024-9.1%-12.5%-5.8%
Q3 2024-2.8%-3.0%-3.0%
Q2 2024-11.5%-9.8%-8.1%
Q1 2024+3.3%+1.7%+2.0%
Q4 2023+4.7%+5.1%+5.1%
Q3 2023-0.8%-0.9%-1.7%
Q2 2023-0.9%-1.5%+2.2%
Q1 2023+1.8%+3.9%-2.1%
Q4 2022-3.8%-1.2%-0.1%
Q3 2022+2.4%+1.4%+9.2%
Q2 2022-2.1%-4.0%-2.2%
Q1 2022+5.1%+3.2%+10.3%
Q4 2021-4.2%-6.2%-5.1%
Q3 2021+8.0%+9.2%-2.9%
Q2 2021-1.9%-2.5%-2.6%
Q1 2021-3.4%-1.4%-1.6%
Q4 2020-2.0%-2.9%-5.4%
Q3 2020-3.4%-4.6%+1.5%
Q2 2020+4.5%+3.4%+8.4%
Q1 2020-3.8%-7.5%-5.9%
Q4 2019-3.0%-3.1%-7.0%
Q3 2019+4.9%+3.3%+6.6%
Q2 2019+0.6%+2.4%+5.1%
Q1 2019+2.5%+4.2%+3.8%
Q4 2018+3.3%+4.0%+9.7%
Q3 2018-0.2%+3.3%+5.9%
Q2 2018+1.2%+2.3%+7.9%
Q1 2018-2.7%-1.9%+1.1%
Q4 2017-5.8%-6.6%-9.2%
Q3 2017-11.7%-10.7%-12.3%
Q2 2017+0.3%-0.4%-1.2%
Q1 2017+2.0%+2.5%+4.6%
Q4 2016+3.5%+3.4%+7.2%
Q3 2016+0.2%-3.1%+1.5%
Q2 2016+0.4%-1.3%+7.6%
Q1 2016-2.2%
Q4 2015-3.6%
Q3 2015+4.1%
Q2 2015+2.7%
Q1 2015+4.5%
Q4 2014-3.0%
Q3 2014-3.1%
Q2 2014+0.2%
Q1 2014+3.3%
Q4 2013+0.5%
Q3 2013-2.1%
Q2 2013-0.3%
Q1 2013-2.7%
Q4 2012-5.6%
Q3 2012-1.4%
Q4 2011-1.0%
Q2 2012+2.6%
Q1 2012+2.0%
Q3 2011-1.5%
Q2 2011-1.6%
Q1 2011-0.7%
Q4 2010+0.8%
Q3 2010-1.8%
Q2 2010+0.8%
Q1 2009-0.1%
Q1 2010+0.1%
Q4 2009+1.4%
Q4 2007+1.4%
Q3 2009-3.5%
Q3 2008-3.5%
Q2 2008+1.7%
Q2 2009+1.7%
Q4 2008+1.7%

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