Merck Q1 Earnings Exceed Estimates, Outlook Revised Amid Tariff Pressures

Merck & Co. reported Q1 earnings that beat estimates, with non-GAAP EPS of $2.22 and revenue of $15.5B. However, the company trimmed its outlook due to tariff pressures. The pharmaceutical giant's stock price has been impacted by patent expiries for key drugs.

Merck & Co. (NYSE: MRK) reported its Q1 2024 earnings, which exceeded market expectations despite a slight dip in revenue. The company posted a non-GAAP earnings per share (EPS) of $2.22, surpassing estimates by $0.08 [2]. Revenue stood at $15.5 billion, which was $170 million higher than analysts' projections [2].

Key drivers of Merck's performance included strong sales of its blockbuster immunotherapy drug, KEYTRUDA, which grew by 4% to $7.2 billion [2]. However, sales of GARDASIL faced a significant 41% decline, highlighting areas of concern [2]. The company's pipeline, which includes 80+ Phase II programs and 30+ Phase III programs, continues to demonstrate Merck's commitment to innovation [1].

Despite the positive earnings report, Merck trimmed its outlook due to tariff pressures. The company's stock price has been impacted by patent expirations for key drugs, which could affect future revenue streams [3].

Investment analysts remain bullish on Merck's prospects. The average one-year price target for Merck & Co Inc (MRK, Financial) is $110.25, with projections ranging from $89.00 to $146.00, suggesting a potential upside of 40.02% from the current trading price of $78.74 [2]. GuruFocus estimates the GF Value for Merck & Co Inc (MRK, Financial) one year from now to be $120.94, indicating a substantial upside potential of 53.59% [2].

References:
[1] https://www.merck.com/investor-relations/
[2] https://www.gurufocus.com/news/2800249/merck-mrk-exceeds-q1-earnings-expectations-despite-revenue-dip
[3] https://www.gurufocus.com/news/2800224/merck-mrk-exceeds-revenue-expectations-with-strong-q1-results-mrk-stock-news