Merck posted mixed fourth-quarter results, beating earnings expectations yet falling short of revenue estimates despite skyrocketing Keytruda sales.
Here’s how the company did compared with what Wall Street expected:
- EPS: 98 cents vs. 94 cents per share, according to Thomson Reuters
- Revenue: $10.43 billion vs. $10.5 billion, according to Thomson Reuters
from the fourth quarter, the pharmaceutical company reported This kind of had a net loss of $872 million, or 32 cents per share, compared using a net loss of $594 million, or 22 cents per share, from the year-earlier quarter.
However, after stripping out special items, such as a $2.6 billion charge related to the brand-new tax law, the company earned $2.7 billion, or 98 cents per share, above analysts’ estimates of 94 cents per share.
Merck posted revenue of $10.43 billion, up 3 percent coming from a year ago yet below expectations of $10.5 billion. Its pharmaceuticals business grew 4 percent coming from the same time last year, reaching $9.3 billion from the quarter.
Sales of Keytruda, Merck’s blockbuster cancer drug, rocketed 169 percent to hit $1.3 billion, narrowly beating Street expectations of $1.27 billion, according to StreetAccount.
Executives declined to provide a firm date for the Discharge of full results coming from a much-anticipated study on Keytruda paired with two chemotherapy drugs. Early results showed the mix helped lung cancer patients live longer along with stopped the disease coming from advancing.
“We are certainly encouraged by the strength of the KEYNOTE-189 data, details of which will also be presented as soon as possible in an appropriate time venue,” said Roger Perlmutter, president of Merck Research Laboratories.
Diabetes drugs Januvia along with Janumet reached $1.52 billion, up 1 percent coming from the year-ago quarter along with just above estimates of $1.5 billion. Management told analysts This kind of expects the diabetes business to be “relatively stable.”
For 2018, Merck forecasts adjusted earnings of $4.08 to $4.23 per share along with revenue of $41.2 billion to $42.7 billion. Analysts had been expecting $4.11 per share along with $41.1 billion, respectively.
Merck expects to pay about $5 billion over eight years for a one-time repatriation tax. The company intends to invest about $12 billion over all 5 years in capital projects, including approximately $8 billion from the U.S.
This kind of plans to provide a “one-time, long-term incentive award” for eligible nonexecutive employees from the second quarter of This kind of year. Further details regarding the award weren’t immediately known.
Merck also made a contribution to its foundation from the fourth quarter.
This kind of year, the company expects its effective tax rate to be between 19 along with 20 percent, essentially flat compared with last year yet down coming from 2016’s rate of 22.3 percent. In coming years, This kind of expects to see “some additional favorability,” Chief Financial Officer Robert Davis told analysts.
Shares of Merck dipped 1 percent in morning trading. They’ve shed 7 percent over the past year.