Health and Healthcare

Merck Earnings Beat Estimates; More Acquisitions on Tap

Paul Ausick

Published: May 5, 2016 7:45 am

Last Updated: January 13, 2020 9:51 am

Drug giant Merck & Co. Inc. (NYSE: MRK) reported first-quarter 2016 results before markets opened Thursday. The company posted adjusted diluted earnings per share (EPS) of $0.89 and revenues of $9.31 billion. In the same period a year ago, Merck reported EPS of $0.85 on revenues of $9.43 billion. First-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.85 and $9.46 billion in revenues.

Pharmaceutical sales were down 2% year over year; however, excluding currency exchange effects, sales were up 2%. Net income on a GAAP basis totaled $1.13 billion while non-GAAP net income totaled $2.49 billion. Non-GAAP net income excludes the impacts of $1.1 billion in expenses for the amortization of intangible assets related to acquisitions, $24 million related to the 2015 acquisition of Cubist Pharmaceuticals and $252 million in impairment charges on product intangibles.

In its financial outlook statement, Merck narrowed and raised the top end of its full-year adjusted EPS from a prior range of $3.60 to $3.75 to a new range of $3.65 to $3.77. The company also said its full-year revenues are expected to fall in a range of $39.0 billion to $40.2 billion, including an estimated 2% negative impact from currency exchange rates.

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