Merck is expected to announce strong Q2 results driven by Keytruda and Gardasil sales

From Nasdaq: 2024-07-28 21:01:13

Merck (MRK) is expected to announce Q2 2024 results with revenue of $15.9 billion and adjusted earnings of $2.20, mainly driven by Keytruda and Gardasil sales. The company’s stock performance has been volatile, underperforming the S&P at times. Despite uncertainties in the macroeconomic environment, Merck’s valuation is close to market price at $127.

In the previous quarter, Merck saw a 9% y-o-y revenue increase, thanks to Keytruda and Gardasil sales growth. Adjusted gross margin also expanded by 430 bps. Keytruda and Gardasil remain key growth drivers, although generic competition for diabetes drugs may impact results. It will be interesting to see how the operating margin trends for Merck in Q2.

Merck’s peers have seen varying levels of returns, with MRK showing a 17% return YTD in 2024. The company is reasonably priced, but comparisons with peers can provide valuable insights. It will be crucial to monitor trends in Keytruda, Gardasil, and generic competition for diabetes drugs to assess Merck’s future performance accurately.



Read more at Nasdaq: Is An Earnings Beat In The Cards For Merck Stock?