NYSE$MRK
Merck & Co. · Q3 2023 earnings
Q3 2023 earnings · · Investor relations
Briefing
Merck reported strong third-quarter results, driven by commitment to innovation and strategic investments.
Merck announced its third-quarter 2023 financial results, with GAAP EPS at $1.86 and non-GAAP EPS at $2.13. The increases in EPS were primarily due to operational strength, and were partially offset by the unfavorable impact of foreign exchange.
- GAAP EPS was $1.86 for the third quarter of 2023.
- Non-GAAP EPS was $2.13 for the third quarter of 2023.
- R&D expenses decreased due to charges recorded in 2022 for intangible asset impairments and collaboration agreements.
- Merck is raising and narrowing its full-year sales outlook, now expecting between $59.7 billion and $60.2 billion.
Headline financials
Revenue & EPS history
Merck · Revenue · Quarterly
$16B
Revenue by segment
Merck · $15B total across 2 segments · Q2 2023
- Pharmaceutical$13.5B+5.6%90.0%
- Animal Health$1.51B+0.6%10.0%
Forward guidance
Merck is raising and narrowing its full-year sales outlook. Merck now expects full-year sales to be between $59.7 billion and $60.2 billion, including a negative impact of foreign exchange of approximately 2 percentage points, at mid-October 2023 exchange rates. This full-year outlook includes approximately $1.3 billion of LAGEVRIO sales. Merck’s full-year non-GAAP effective income tax rate is expected to be between 39.0% and 40.0%, which includes an approximate 24.5 percentage point negative impact related to business development activity. Merck now expects its full-year non-GAAP EPS to be between $1.33 and $1.38, including a negative impact of foreign exchange of approximately 6 percentage points, at mid-October 2023 exchange rates.
Tailwinds
- Strong sustained demand for key growth products, particularly in oncology and vaccines.
- Raising and narrowing its full-year sales outlook.
- Full-year outlook includes approximately $1.3 billion of LAGEVRIO sales.
Headwinds
- Negative impact of foreign exchange of approximately 2 percentage points on full-year sales.
- Full-year non-GAAP effective income tax rate includes an approximate 24.5 percentage point negative impact related to business development activity.
- Negative impact of foreign exchange of approximately 6 percentage points on full-year non-GAAP EPS.
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 2023
-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
| Quarter | Report date | Reaction (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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