NYSE$MRK

Merck & Co. · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Merck's Q2 2024 financial results were announced, showcasing strong momentum and significant milestones including the launch of WINREVAIR.

Merck reported strong Q2 2024 results, with GAAP EPS at $2.14 and non-GAAP EPS at $2.28. The company highlighted the launch of WINREVAIR and progress in its pipeline.

  • GAAP EPS was $2.14 for the second quarter of 2024.
  • Non-GAAP EPS was $2.28 for the second quarter of 2024.
  • WINREVAIR was launched in the U.S. with over 1,000 patients receiving the treatment by the end of June.
  • FDA approved KEYTRUDA in combination with chemotherapy for certain patients with endometrial carcinoma.

Headline financials

Total Revenue

$16.1B

Previous: $15B+7.2%
EPS

$2.14

Previous: -$2.06+203.9%
KEYTRUDA sales

$7.27B

Previous: $6.28B+15.9%
GARDASIL sales

$2.48B

Previous: $987M+151.1%
WINREVAIR sales

$70M

No prior period
Capital Expenditures

-$1.65B

Previous: $965M-271.2%
Free Cash Flow

$3.8B

Previous: -$5.98B+163.6%
Net Income

$5.46B

Previous: -$5.98B+191.3%
Operating Income

$6.05B

Previous: -$5.16B+217.1%
Gross Profit

$12.4B

Previous: $11B+12.3%
Cash & Equivalents

$11.3B

Previous: $5.66B+99.7%
Total Assets

$113B

Previous: $104B+7.8%
R&D Expense

$3.48B

No prior period
Stock-Based Comp

$203M

Previous: $169M+20.1%

Revenue & EPS history

Merck · Revenue · Quarterly

$16.1B

Q2 2024+7.2%vs Q2 2023
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Merck · $15B total across 2 segments · Q2 2023

  • Pharmaceutical
    $13.5B+5.6%
  • Animal Health
    $1.51B+0.6%

Forward guidance

Merck is raising and narrowing its full-year sales outlook and now expects its full-year sales to be between $63.4 billion and $64.4 billion. Merck now expects its full-year non-GAAP EPS to be between $7.94 and $8.04.

Tailwinds

  • Strong global demand for key growth products, particularly in oncology.
  • Raising and narrowing its full-year sales outlook.
  • Full-year sales to be between $63.4 billion and $64.4 billion.
  • Full-year non-GAAP EPS to be between $7.94 and $8.04.
  • Inflation-related price increases are expected to offset the devaluation of the Argentine peso.

Headwinds

  • Negative impact of foreign exchange of approximately 3 percentage points.
  • Approximately 2 percentage points of the negative impact of foreign exchange is due to the devaluation of the Argentine peso.
  • Unfavorable impact related to the one-time charge for the acquisition of EyeBio, which is not tax deductible.
  • Negative impact of foreign exchange of more than $0.30 per share.
  • Outlook does not assume any additional significant potential business development transactions.

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 Q2 2024

Historical avgQ2 2024

-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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