NYSE$MRK

Merck & Co. · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Merck's Q4 2022 financial results were announced, showcasing growth in pharmaceutical sales driven by oncology and hospital acute care, alongside a decline in animal health sales.

Merck reported a 1% increase in fourth-quarter pharmaceutical sales, reaching $12.2 billion, driven by oncology and hospital acute care, while animal health sales saw a 2% decline. GAAP EPS was $1.18, and non-GAAP EPS was $1.62. The company anticipates full-year 2023 revenue between $57.2 billion and $58.7 billion.

  • Pharmaceutical sales grew 1% to $12.2 billion, driven by oncology and hospital acute care.
  • KEYTRUDA sales increased 19% to $5.5 billion, reflecting strong momentum from metastatic indications and increased uptake across recent earlier-stage launches.
  • Vaccines sales decreased 4% to $1.5 billion, with GARDASIL/GARDASIL 9 sales declining due to lower U.S. demand.
  • Animal Health sales declined 2% to $1.2 billion, impacted by a reduction in veterinary visits and supply constraints for certain vaccines.

Headline financials

Total Revenue

$13.8B

Previous: $13.5B+2.3%
EPS (adj)

$1.62

Previous: $1.80-10.0%
KEYTRUDA sales

$5.5B

Previous: $4.6B+19.6%
GARDASIL sales

$1.5B

Previous: $1.5B+0.0%
Capital Expenditures

$1.15B

Previous: $4.45B-74.2%
Net Income

$3B

Previous: $3.83B-21.7%
Operating Income

$3.3B

Previous: $4.05B-18.4%
Gross Profit

$9.63B

Previous: $9.65B-0.1%
Cash & Equivalents

$12.7B

Previous: $8.1B+56.8%
Total Assets

$109B

Previous: $106B+3.3%
Stock-Based Comp

$145M

Previous: $119M+21.8%

Revenue & EPS history

Merck · Revenue · Quarterly

$13.8B

Q4 2022+2.3%vs Q4 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Merck · $13.4B total across 2 segments · Q4 2022

  • Pharmaceutical
    $12.2B+1.7%
  • Animal Health
    $1.2B-7.7%

Forward guidance

Merck anticipates full-year 2023 revenue to be between $57.2 billion and $58.7 billion, including a negative impact of foreign exchange of approximately 2%. The company expects a significant decline in sales of LAGEVRIO, which are expected to be approximately $1.0 billion. Merck expects full-year 2023 GAAP EPS to be between $5.86 and $6.01 and non-GAAP EPS to be between $6.80 and $6.95, including a negative impact of foreign exchange of approximately 4%.

Tailwinds

  • Full-year 2023 revenue is expected to be between $57.2 billion and $58.7 billion.
  • Full-year 2023 GAAP EPS is projected to be between $5.86 and $6.01.
  • Full-year 2023 non-GAAP EPS is anticipated to be between $6.80 and $6.95.
  • The financial outlook considers the acquisition of Imago and a collaboration with Kelun-Biotech.
  • Operating expenses include incremental R&D spending to advance the development of new programs.

Headwinds

  • A negative impact of foreign exchange of approximately 2% is expected on revenue.
  • A significant decline in sales of LAGEVRIO is anticipated, with expected sales of approximately $1.0 billion.
  • A negative impact of foreign exchange of approximately 4% is expected on non-GAAP EPS.
  • The Imago acquisition is anticipated to result in an approximate 1 percentage point unfavorable impact to Merck’s expected full-year 2023 GAAP and non-GAAP tax rates.
  • GAAP and non-GAAP EPS in 2022 were negatively impacted by $0.22 of charges related to collaboration and licensing agreements.

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 2022

Historical avgQ4 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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