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Key Takeaways
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Merck & Co. reduced its full-year adjusted EPS projection to between $7.94 and $8.04 from its prior guidance of $8.53 to $8.65.
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Second-quarter sales of its flagship drug Keytruda rose 16% year-over-year.
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The company beat Q2 expectations on the top and bottom lines.
Shares of Merck & Co. (MRK) tumbled Tuesday after the pharmaceutical giant cut its full-year adjusted profit guidance.
The producer of the cancer drug Keytruda now expects full-year adjusted earnings per share (EPS) of between $7.94 and $8.04, down from its prior guidance of $8.53 to $8.65. The change reflects the impact from a one-time charge of about $1.3 billion, or $0.51 per share, for the acquisition of EyeBio.
Merck Beats Q2 Revenue, Profit Estimates
In the second quarter, Merck posted EPS of $2.14 on revenue of $16.11 billion, topping analysts’ expectations of $2.05 and $15.88 billion, per Visible Alpha.
The company’s pharmaceutical arm delivered $14.41 billion in revenue, up 7% from a year ago, led by its flagship cancer drug Keytruda, which saw sales rise 16% to $7.27 billion. Winrevair, a pulmonary arterial hypertension drug approved by the Food and Drug Administration (FDA) in March, saw sales of $70 million.
Shares of Merck sank more than 9% to $115.91 as of 11:30 a.m. ET Tuesday.
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