Why did MRK's Q4 2024 EPS surprise analysts?

Merck & Co. (MRK) experienced a robust Q4 2024 with a 7% revenue increase and a 18% boost in Keytruda sales, which was a key factor in the EPS surprise. Keytruda, a blockbuster drug, brought in $29.5 billion in revenue, accounting for a significant portion of the company's growth. The company's strategic moves in oncology, including targeted acquisitions and partnerships, have deepened its competitive moat and laid the groundwork for sustained expansion.

Furthermore, the company's operating efficiency is reflected in its gross margin improvement to 76.3%, aided by a favorable product mix and disciplined cost controls. The positive outlook for Merck is also reflected in the analyst ratings, with the stock being rated "Outperform" by brokerage firms, and analysts projecting a strong upside from the current price.

In summary, Merck's Q4 2024 EPS surprise can be attributed to the strong revenue growth driven by Keytruda sales and strategic initiatives in oncology, along with operational efficiency and a positive market outlook.

|code|Ticker|Name|Date|Revenue Surprise|EPS Surprise|market_code|
|---|---|---|---|---|---|---|
|MRK|MRK.N|Merck|2024 Q1|5.8E8|0.14|169|
|MRK|MRK.N|Merck|2024 Q2|2.72E8|0.13|169|
|MRK|MRK.N|Merck|2024 Q3|2.1E8|0.07|169|
|MRK|MRK.N|Merck|2024 Q4|1.14E8|0.04|169|