Investors Greet Merck Q2 Results As Key Launches Help Beat

Merck & Co, Inc. MRK released its second quarter results reporting a 6 percent increase in adjusted profit driven by 2 percent top line growth.

The results topped the expectations to send the stock 1.5 percent higher in pre-market trading.

The drug maker reported GAAP net income of $1.205 billion for the second quarter representing 75.4 percent year-over-year growth while EPS surged 79.2 percent to $0.43. On an adjusted basis, its net income would have been $2.59 billion or $0.93 a share and came in $0.02 a share higher than the Street expectations of $0.91 a share.

Merck sales were $9.98 billion, up two percent from $9.78 billion in the same quarter last year. This was also higher than the analysts' predictions of $9.78 billion.

Chairman and CEO, Kenneth Frazier, said, "Our results this quarter reflect our strategic focus on key launches, including KEYTRUDA and ZEPATIER, as well as our priority inline programs. We remain committed to advancing our pipeline, delivering a balanced and differentiated portfolio, and achieving long-term, sustainable growth."

Going forward, Merck expects revenue of $39.1-$40.1 billion for the full year 2016. Similarly, the company sees achieving adjusted EPS of $3.67-$3.77 for the same period. Analysts are looking for an EPS of $3.72 on revenues of $39.49 billion.