Merck & Company Inc (NYSE:MRK) reported earnings before the open Thursday, topping both profit and revenue consensus expectations.
The pharmaceutical company reported earnings of $2.13 per share, $0.18 better than the analyst estimate of $1.95, while revenue for the quarter came in at $16 billion, up 7% YoY and above the consensus estimate of $15.29B.
The company said its sales reflected sustained growth, particularly in its oncology and vaccine segments.
“We continue to push the boundaries of science, making disciplined investments to augment our diverse pipeline and applying our expertise to accelerate potentially transformative treatments to address patient needs – including through our recently announced collaboration with Daiichi Sankyo," said Robert Davis, chairman and chief executive officer of Merck.
Looking ahead, the company sees FY2023 earnings between $3.03 and $3.08, versus the consensus of $2.86, with revenue for the period between $59.7B and $60.2B, versus the consensus of $55.98B.
Reacting to the report, analysts at Morgan Stanley said the Q3 beat was driven mainly by Lagevrio, while Keytruda also came in slightly ahead.
"New revenue guidance is $59.7-$60.2bn (prev. $58.6-$59.6bn; incl. $1.3bn for Lagevrio vs. $1bn prior); midpoint of $60.0bn (up 1% from $59.1bn) is 1% above cons' $59.3bn and in line with our $60.2bn," explained the analysts, who maintained an Equal-Weight rating and $115 price target on the stock.
Morgan Stanley expects MRK shares to "trade relatively in line with the market" following the results.