Merck & Co has revised its full-year earnings forecast downward to $7.94 to $8.04 per share, from the previous range of $8.53 to $8.65, primarily due to a $1.3 billion charge related to its acquisition of EyeBio.
This adjustment led to a nearly 2% drop in Merck’s shares in premarket trading, though the stock is up over 17% for the year.
Despite the earnings forecast cut, Merck slightly increased its full-year sales projections. The company reported a second-quarter profit of $5.5 billion, or $2.14 per share, compared to a loss of $6 billion a year earlier.
Excluding one-time charges, earnings were $2.28 per share, surpassing analysts’ expectations.
Sales reached $16.1 billion, a 7% increase year-over-year, driven by strong growth in Keytruda, Merck’s leading cancer immunotherapy, which generated $7.3 billion in sales for the quarter.
Merck now anticipates full-year sales between $63.4 billion and $64.4 billion, up from the previous forecast of $63.1 to $64.3 billion.
Keytruda remains a significant revenue contributor, with sales expected to exceed $30 billion annually before its patent expires.
Reuters