Shares of Merck & Co. Inc. (MRK) rallied 3.4% in premarket trading Friday, after the drug giant reported second-quarter profit and sales that beat expectations, while pharmaceutical sales fell from the effects of the COVID-19 pandemic, and raised its full-year outlook. Net income rose to $3.00 billion, or $1.18 a share, from $2.67 billion, or $1.03 a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share grew to $1.37 from $1.30 and beat the FactSet consensus of $1.08. Sales fell 8% to $10.87 billion, but was above the FactSet consensus of $10.44 billion, as pharmaceutical sales declined 7% to $9.68 billion. Animal health sales slipped 2% to $1.10 billion, but topped expectations of $944.6 million. The company said it estimates the negative effect of the COVID-19 pandemic on revenue to be about $1.6 billion, consisting of about $1.5 billion in pharmaceuticals and $100 million from animal health. Among Merck's biggest selling drugs, Keytruda sales rose 29% to $3.39 billion, above expectations of $3.13 billion, while Januvia/Janumet sales slipped 7% to $1.34 billion to top expectations of $1.26 billion. For 2020, the company raised its guidance ranges for adjusted EPS to $5.63 to $5.78 from $5.17 to $5.37 and for revenue to $47.2 billion to $48.7 billion from $46.1 billion to $48.1 billion. The stock has declined 13.2% year to date through Thursday, while the Dow Jones Industrial Average has lost 7.8%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
July 31, 2020 07:04 ET (11:04 GMT)
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