NYSE$MRK

Merck & Co. · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Merck delivered a strong quarter with positive momentum and progress across the pipeline.

Merck announced strong Q3 2021 financial results, driven by key products like KEYTRUDA and GARDASIL. The company is also advancing its pipeline with positive Phase 3 results for molnupiravir and the planned acquisition of Acceleron.

  • Merck achieved notable clinical milestones in oncology and COVID-19.
  • Positive Phase 3 results were reported for molnupiravir.
  • The company announced a proposed acquisition of Acceleron to strengthen its cardiovascular portfolio.
  • Merck is focused on expanding its portfolio and pipeline for long-term success.

Headline financials

Total Revenue

$13.2B

Previous: $12.6B+4.8%
EPS (adj)

$1.75

Previous: $1.74+0.6%
KEYTRUDA sales

$4.5B

Previous: $3.7B+21.6%
GARDASIL sales

$2B

No prior period
Free Cash Flow

$4.57B

Previous: $2.94B+55.3%
Net Income

$4.57B

Previous: $2.94B+55.3%
Operating Income

$4.82B

Previous: $3.08B+56.3%
Gross Profit

$9.7B

Previous: $9.07B+7.0%
Cash & Equivalents

$10B

Previous: $7.36B+36.2%
Total Assets

$93.5B

Previous: $89.8B+4.1%
Stock-Based Comp

$117M

Previous: $125M-6.4%

Revenue & EPS history

Merck · Revenue · Quarterly

$13.2B

Q3 2021+4.8%vs Q3 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Merck · $12.9B total across 2 segments · Q3 2021

  • Pharmaceutical
    $11.5B+1.8%
  • Animal Health
    $1.4B+16.7%

Forward guidance

Merck is raising and narrowing its full-year estimated ranges for revenue and EPS.

Tailwinds

  • Sales growth of 14% to 15% is expected in 2021.
  • Full-year 2021 revenue is estimated to be between $47.4 billion and $47.9 billion.
  • GAAP EPS range is raised and narrowed to be between $4.71 and $4.76.
  • Non-GAAP EPS range is raised and narrowed and now expects full-year 2021 to be between $5.65 and $5.70.
  • The pandemic will have a net unfavorable impact to 2021 revenues of less than 3%.

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 Q3 2021

Historical avgQ3 2021

-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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