NYSE$MRK

Merck & Co. · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Merck's business achieved strong revenue and earnings growth, driven by key products like KEYTRUDA and GARDASIL, as well as the introduction of molnupiravir.

Merck reported strong fourth-quarter and full-year 2021 financial results, driven by growth in oncology, vaccines, and hospital acute care products, as well as the introduction of molnupiravir. The company achieved significant progress against its strategic priorities, including advancing its pipeline and closing the acquisition of Acceleron Pharma Inc.

  • Fourth-quarter pharmaceutical sales increased 23% to $12.0 billion, reflecting sales of molnupiravir and growth in oncology, vaccines and hospital acute care products.
  • Molnupiravir sales were $952 million in the fourth quarter of 2021, primarily consisting of sales in the U.S., the U.K. and Japan.
  • Growth in oncology was largely driven by higher sales of KEYTRUDA, which rose 15% to $4.6 billion in the quarter.
  • Fourth-quarter 2021 GARDASIL/GARDASIL 9 sales grew 53% to $1.5 billion, primarily driven by strong global demand, particularly in China, which also benefited from increased supply.

Headline financials

Total Revenue

$13.5B

Previous: $12.5B+8.0%
EPS (adj)

$1.80

Previous: $1.32+36.4%
KEYTRUDA sales

$4.6B

Previous: $4B+15.0%
GARDASIL sales

$1.5B

Previous: $1.3B+15.4%
Capital Expenditures

$4.45B

No prior period
Net Income

$3.83B

Previous: -$205M+1967.8%
Operating Income

$4.05B

Previous: $139M+2810.1%
Gross Profit

$9.65B

Previous: $7.03B+37.2%
Cash & Equivalents

$8.1B

Previous: $8.05B+0.6%
Total Assets

$106B

Previous: $91.6B+15.4%
Stock-Based Comp

$119M

Previous: $121M-1.7%

Revenue & EPS history

Merck · Revenue · Quarterly

$13.5B

Q4 2021+8%vs Q4 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Merck · $13.3B total across 2 segments · Q4 2021

  • Pharmaceutical
    $12B+5.3%
  • Animal Health
    $1.3B+8.3%

Forward guidance

Merck anticipates full-year 2022 revenue to be between $56.1 billion and $57.6 billion, including a negative impact from foreign exchange of approximately 2%. Merck expects full-year 2022 GAAP EPS to be between $5.76 and $5.91. Merck expects full-year 2022 non-GAAP EPS to be between $7.12 and $7.27, including a negative impact from foreign exchange of approximately 1%.

Tailwinds

  • Full-year 2022 revenue to be between $56.1 billion and $57.6 billion.
  • Full-year 2022 GAAP EPS to be between $5.76 and $5.91.
  • Full-year 2022 non-GAAP EPS to be between $7.12 and $7.27.
  • Includes expected sales of $5 billion to $6 billion from molnupiravir.
  • EPS guidance for 2022 assumes a share count (assuming dilution) of approximately 2.53 billion shares.

Headwinds

  • Includes a negative impact from foreign exchange of approximately 2% on revenue.
  • Includes a negative impact from foreign exchange of approximately 1% on non-GAAP EPS.
  • Non-GAAP range excludes acquisition- and divestiture-related costs.
  • Non-GAAP range excludes costs related to restructuring programs.
  • Non-GAAP range excludes income and losses from investments in equity securities.

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 Q4 2021

Historical avgQ4 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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