Merck & Co., Inc., AbbVie Inc Rise After Earnings

Merck and AbbVie released their latest earnings reports before opening bell this morning. Merck posted adjusted earnings of 93 cents per share on $9.84 billion in revenue. Analysts had been expecting the drug maker to report 91 cents per share in adjusted earnings and $9.78 billion in revenue. In last year’s second quarter, Merck reported $9.79 billion in revenue and 86 cents per share in non-GAAP earnings.

AbbVie reported adjusted earnings of $1.26 per share on $6.45 billion in revenue, compared to the consensus estimates of $1.20 per share and $6.2 billion. In last year’s second quarter, the drug maker reported revenue of $6.5 billion in revenue.

Merck rises after earnings

Merck & Co. Logo

Merck’s GAAP earnings surged from 24 cents per share last year to 43 cents per share this year. Pharmaceutical sales climbed 2% to $8.7 billion on the back of strong sales in oncology, hospital acute care, the company’s cardiovascular franchise and vaccines. Keytruda drove the increase in oncology drug sales, surging from $110 million last year to $314 million this year. The drug maker said Januvia and Janumet revenue climbed 2% to $1.63 billion, beating the consensus of $1.61 billion. Sales of Zetia and Vytorin rose 4% to $994 million, while Cubicin sales surged 22% to $357 million.

Merck expects full-year adjusted earnings to be between $3.67 and $3.77 per share, compared to the consensus of $3.72 per share. This new range includes an increase in the bottom end. The drug maker expects full-year revenue to be between $39.1 billion and $40.1 billion, against the consensus of $39.5 billion. It cut its full-year GAAP outlook to between $1.98 and $2.08 per share as a result of higher restructuring costs and intangible impairment charges.

Shares of Merck rose by as much as 1.73% to $59.44 in premarket trading this morning.

AbbVie raises earnings guide

AbbVie’s GAAP earnings rose to 98 cents per share from last year’s 83 cents per share. Sales of Humira surged 17.4% year over year on a reported basis to $4.1 billion with strength in all three categories of rheumatology, dermatology and gastroenterology. Imbruvica sales grew more than 100% to $439 million, while Viekira sales increased 9.1% to $419 million.

AbbVie also increased its full-year guide for non-GAAP earnings to between $4.73 and $4.83 per share from the previous outlook of $4.62 to $4.82 per share. The consensus for the full-year adjusted earnings stands at $4.75 per share.

Shares of AbbVie rose by as much as 1.5% to $65.69 in premarket trading this morning.