Stock to Keep Your Eyes on: Merck & Co., Inc. (NYSE: MRK)

Health and Biotech

On 08 Nov 2019, Merck & Co., Inc. (NYSE: MRK) noted negative change of -0.44% in recent trading period with closing price of $82.88. The company traded 8611673 shares compared to an average volume of 8296.73K shares. EPS growth for this year is 33.00% and EPS growth for next year is expected to reach at 10.07%. EPS growth in past five years was 10.60% while EPS growth in next five years is projected to arrive at 9.10%. Sales growth past 5 years was measured at -0.80%.

Merck (MRK) recently reported financial results for the third quarter of 2019.

  • Third-Quarter 2019 Worldwide Sales Were $12.4B, a raise of 15%; Sales Increased 16% Not Including Impact from Foreign Exchange; Growth Driven by Oncology and Human Health Vaccines
    • KEYTRUDA Sales Grew 62% to $3.1B; Not Including the Impact of Foreign Exchange, Sales Grew 64%
    • Human Health Vaccines Sales Grew 17% to $2.5B; Not Including the Impact of Foreign Exchange, Sales Grew 18%
  • Third-Quarter 2019 GAAP EPS was $0.74, a raise of 1%; Third-Quarter Non-GAAP EPS was $1.51, a raise of 27%
  • Company Narrows and Raises 2019 Full-Year Revenue Range to be Between $46.5B and $47.0B, Including a Negative Impact from Foreign Exchange of About 2%
  • Company Narrows and Reduces 2019 Full-Year GAAP EPS Range to be Between $3.75 and $3.80; Narrows and Raises 2019 Full-Year Non-GAAP EPS Range to be Between $5.12 and $5.17, Including a Negative Impact from Foreign Exchange of About 1%

“We achieved another quarter of strong revenue and earnings growth as we continue to realize the benefits of our sustained investment in research and development and our focus on commercial execution,” stated Kenneth C. Frazier, chairman and chief executive officer, Merck. “We are confident that the investments we are making now will allow us to convert cutting-edge science into medicines and vaccines of great benefit to patients and value to shareholders.”

Animal Health Revenue

Animal Health sales totaled $1.1B for the third quarter of 2019, a raise of 10% contrast with the third quarter of 2018. Not Including the unfavorable effect from foreign exchange, Animal Health sales grew 12%. Growth in the third quarter was primarily driven by livestock, Because of products purchased in the Antelliq acquisition, together with growth from companion animal products, driven largely by higher sales of the BRAVECTO (fluralaner) line of products for parasitic control.

Animal Health section profits were $423M in the third quarter of 2019, a raise of 4% contrast with $409M in the third quarter of 2018.3

GAAP Expense, EPS and Related Information

Gross margin was 67.8% for the third quarter of 2019 contrast to 66.5% for the third quarter of 2018. The increase in gross margin for the third quarter of 2019 reflects the favorable impacts of a charge in 2018 related to the termination of a alliance contract with Samsung Bioepis Co., Ltd. and product mix, partially offset by higher acquisition- and divestiture-related costs, including the impact of a 2019 intangible asset impairment charge, higher amortization of unfavorable manufacturing variances, higher amortization of intangible assets related to collaborations, higher restructuring costs, as well as manufacturing facilities startup costs.

Selling, general and administrative expenses were $2.6B in the third quarter of 2019, a 6% increase contrast to the third quarter of 2018. The increase primarily reflects higher promotion and administrative costs primarily in support of planned brands, and higher acquisition- and divestiture-related costs, partially offset by the favorable effects of foreign exchange.

Research and development (R&D) expenses were $3.2B in the third quarter of 2019, a raise of 55% contrast with the third quarter of 2018. The increase was driven primarily by a $982M charge recorded in the third quarter of 2019 for the acquisition of Peloton coupled with higher expenses related to clinical development and increased investment in discovery research and early drug development. You can also download Geometry Dash for your phone if you wish to.

Other (income) expense, net, was $35M of expense in the third quarter of 2019 contrast to $172M of income in the third quarter of 2018 primarily reflecting lower income from investments in equity securities and higher net interest expense.

The effective income tax rate of 18.7% for the third quarter of 2019 includes the unfavorable impact of the charge for the acquisition of Peloton for which no tax benefit was recognized and the favorable impact of product mix.

GAAP EPS was $0.74 for the third quarter of 2019 contrast with $0.73 for the third quarter of 2018.

During the twelve month it rose at 13.05% and year to date performance of 8.47%. Looking about the past performance history, the company lost at -4.36% in past week and declined with -1.54% in one month. During the past three-month period the stock dropped of -3.09% and increased at 6.00% in past six month.