Merck Raises, Narrows Full-year Guidance

While reporting first-quarter results on Thursday, Merck (MRK) said it continues to experience strong global underlying demand across its key pillars of growth. As a result, the company increased and narrowed its full-year guidance for revenues and EPS. Merck raised and narrowed its full-year 2022 non-GAAP EPS range to be between $7.24 and $7.36. The company also raised and narrowed its full-year 2022 GAAP EPS range to be between $5.90 and $6.02.

Merck now expects sales growth of 17% to 19% in 2022, with full-year revenue estimated to be between $56.9 billion and $58.1 billion. The company noted that its full year guidance includes expected sales of $5.0 billion to $5.5 billion from LAGEVRIO.

First quarter non-GAAP EPS was $2.14 compared to $1.16, a year ago. On average, 16 analysts polled by Thomson Reuters expected the company to report profit per share of $1.83, for the quarter. Analysts' estimates typically exclude special items.

Net income from continuing operations attributable to Merck & Co. was $4.31 billion, up 57% from last year. GAAP EPS from continuing operations was $1.70 compared to $1.08.

First-quarter worldwide sales from continuing operations were $15.9 billion, an increase of 50% from last year. Pharmaceutical sales increased 53% to $14.1 billion. LAGEVRIO sales totaled $3.2 billion for the first quarter. Pharmaceutical sales growth in the first quarter was 18%, excluding LAGEVRIO sales. Analysts on average had estimated $14.68 billion in revenue.

Shares of Merck were up 2% in pre-market trade on Thursday.

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