Merck & Co., Inc. (NYSE:MKR) released the earnings results from its third quarter this morning before opening bell, posting adjusted earnings of 90 cents per share on $10.56 billion in revenue. Analysts had been expecting earnings of 88 cents per share on $10.65 billion in revenue. In last year’s third quarter, the drug maker posted sales of $11.03 billion.
Reported earnings per share were 31 cents, compared to 38 cents per share in the same quarter a year ago.
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Key metrics from Merck’s earnings report
Merck’s 4% year over year decline in worldwide sales was due to negative impacts from divested products, expirations of patents, and a decline in sales of the company’s hepatitis C drugs. However, Merck did see an increase in sales of its acute care, immunology, diabetes and animal health products.
The drug maker reported an 11% increase in its inflammatory disease treatments Remicade and Simponi and a 5% increase in its diabetes drugs Januvia and Janumet. Merck lost market exclusivity for the allergy drug Singulair and the drug Temodar and saw a decline in its hepatitis drugs Victrelis and Pegintron due to more competition. Sales of cholesterol lowering drugs Zetia and Vytorin declined 3% year over year. Sales of HIV drug Isentress fell 3% year over year.
Other revenues declined 56% year over year due to the loss in revenue from the end of the joint venture with AstraZeneca plc (ADR) (NYSE:AZN) (LON:AZN).
During the quarter, the Food and Drug Administration approved Merck’s Keytruda drug to treat advanced melanoma and Belsomra for insomnia. The company also completed the sale of the consumer care business to Bayer and its acquisition of Indenix Pharmaceuticals.
Merck tightens guidance
This morning Merck also tightened its full year guidance for adjusted earnings per share, raising the bottom number but lowering the top. The drug maker increased it from between $3.43 and $3.53 per share to between $3.46 and $3.50 per share.
Merck now projects full year GAAP earnings per share to be between $4.06 and $4.29 and revenue to be between $42.4 billion and $42.8 billion.