What drove MRK's EPS growth in Q2 2024?

Merck & Co. Inc.'s (MRK) EPS growth in Q2 2024 can be attributed to several key factors:

1. **Strong Revenue Growth**: Merck experienced a 7% increase in revenues, reaching $16.11 billion in Q2 2024. This growth is a direct result of increased sales in key areas such as oncology and cardiovascular franchises.
2. **Keytruda Sales Boost**: The sales of Merck's blockbuster drug, Keytruda, saw an 18% increase, contributing significantly to the revenue growth. Keytruda, also known as pembrolizumab, is a cancer treatment that has been approved for various indications, including lung cancer and melanoma.
3. **Cost Control and Efficiency**: Merck's gross margin improved to 76.3%, which was enhanced by a favorable product mix and disciplined cost controls. This indicates that the company is not only increasing its top line but also managing its expenses effectively, which directly impacts the bottom line and EPS.
4. **Reduced R&D Expenses**: The company has seen a meaningful reduction in R&D expenses, which has contributed to its net income surge. This reduction, coupled with increased net income, has led to a higher EPS.
5. **Positive Outlook and Analyst Confidence**: Analysts have a bullish outlook on Merck, with a projected 42.58% increase in the stock price. This positive sentiment could attract more investors, potentially increasing the stock's valuation and affecting the EPS through changes in the company's market capitalization.

In summary, Merck's EPS growth in Q2 2024 is driven by strong revenue growth, particularly from Keytruda sales, cost control, reduced R&D expenses, and a positive market outlook.

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|MRK|MRK.N|Merck|2023 Q3|45.31250000000001|1.86|169|
|MRK|MRK.N|Merck|2023 Q4||-0.48|169|
|MRK|MRK.N|Merck|2024 Q1|68.46846846846847|1.87|169|
|MRK|MRK.N|Merck|2024 Q2|191.06382978723403|2.14|169|

|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|MRK|MRK.N|Merck|2024 Q1|68.7433628318584|4.767E9|169|
|MRK|MRK.N|Merck|2024 Q2|191.443402545211|5.461E9|169|

|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|MRK|MRK.N|Merck|2023 Q3|6.7049936493081095|1.5962E10|169|
|MRK|MRK.N|Merck|2023 Q4|5.784526391901663|1.463E10|169|
|MRK|MRK.N|Merck|2024 Q1|8.890729619659005|1.5775E10|169|
|MRK|MRK.N|Merck|2024 Q2|7.163285666777519|1.6112E10|169|