Merck & Co. (MRK) reported revenue of ~$10.5 billion in the second quarter, a 5% YoY (year-over-year) rise in revenue compared to ~$9.9 billion in the second quarter of 2017.
The chart above shows Merck & Co.’s quarterly revenue trend since the first quarter of 2017.
Revenue performance in the second quarter
Merck & Co. reported a rise of 5% in its top line to ~$10.5 billion in the second quarter, including a 4% rise in operating revenue and a 1% favorable impact of foreign exchange. Its net adjusted income rose to ~$11.5 billion in the quarter, a 5.2% rise compared to its net adjusted income of ~$10.9 billion in the second quarter of 2017.
This revenue growth was driven by the strong sales of Keytruda, the Gardasil franchise, ProQuad/Varivax, RotaTeq, Pneumovax 23, Bridion, Noxafil, Simponi, Belsomra, Isentress, Januvia, Janumet, Atozet, Adempas, and a few other drugs from its pharmaceutical business. Livestock and companion animal products also contributed to the rise. However, the lower sales of a few of its pharmaceutical products substantially offset the company’s revenue growth in the second quarter.
The company’s US markets reported sales of $4.24 billion in the second quarter, a 1.5% fall compared to its US sales of ~$4.31 billion in the second quarter of 2017. The decrease was driven by a 2.8% fall in pharmaceutical sales, and it was partially offset by a rise in animal health sales during the quarter.
The company’s international markets reported a 10.6% rise in revenue to ~$6.2 billion in the second quarter compared to revenue of $5.6 billion in the second quarter of 2017.
Estimates for 2018
Analysts expect Merck & Co. to report a 5.6% YoY rise in revenue to $42.4 billion in 2018 compared to its revenue of ~$40.1 billion in 2017. Its adjusted EPS are expected to rise ~7.5% to $4.28 in 2018.