uploads/2019/04/Graph-13-1.png

What to Expect from Merck’s Q1 Revenues and Earnings

By

Updated

Financial performance in the first quarter

Wall Street analysts have forecasted Merck’s (MRK) revenues to be $10.48 billion, $10.92 billion, $11.34 billion, and $11.62 billion, in the first, second, third, and fourth quarters of fiscal 2019, respectively. These estimates imply a YoY change of 4.38%, 4.32%, 5.10%, and 5.68%, in the first, second, third, and fourth quarters of fiscal 2019, respectively.

Wall Street analysts have forecasted Merck’s SG&A (selling, general, and administrative) and R&D (research and development) expenses to be $2.54 billion and $1.96 billion, respectively. Analysts expect Merck’s non-GAAP EPS to be $1.05, $1.14, $1.25, and $1.23, in the first, second, third, and fourth quarters of fiscal 2019, respectively, which implies a YoY change of 0.43%, 7.60%, 5.10%, and 18.10%, in the first, second, third, and fourth quarters of fiscal 2019, respectively.

Article continues below advertisement

Financial performance in fiscal 2019

Wall Street analysts have forecasted Merck’s (MRK) revenues to be $44.42 billion, $10.92 billion, $47.00 billion, and $49.41 billion, in fiscal 2019, fiscal 2020, and fiscal 2021, respectively, which implies a YoY change of 5.03%, 5.80%, and 5.13% in fiscal 2019, fiscal 2020, and fiscal 2021, respectively.

In its fourth-quarter earnings conference call, Merck has guided for fiscal 2019 revenues in the range of $43.2 billion to $44.7 billion, driven mainly by the robust performance of its vaccines, hospital, oncology, and specialty franchises. At mid-January rates, the company has assumed one percentage point negative revenue impact due to foreign exchange movements.

Wall Street analysts have forecasted Merck’s SG&A and R&D expenses to be $10.35 billion and $8.40 billion, respectively. In its fourth-quarter earnings conference call, Merck guided for a low to mid-single digit YoY increase in operating expenses in fiscal 2019.

Wall Street analysts have forecasted Merck’s non-GAAP EPS to be $4.68, $5.24, and $5.85 in fiscal 2019, fiscal 2020, and fiscal 2021, respectively, which implies a YoY change of 7.72%, 12.15%, and 11.51%, in fiscal 2019, fiscal 2020, and fiscal 2021, respectively. The company guided for non-GAAP EPS of $4.57 to $4.72 for fiscal 2019.

Advertisement

More From Market Realist