Merck Posts Mixed Q4 Earnings; Kenneth Frazier To Step Down As CEO

  • Merck & Co. Inc (NYSE: MRKreported a fourth-quarter profit of $1.32 per share, which missed the analyst consensus estimate of $1.38. Sales grew 5% to $12.51 billion, marginally missing the consensus estimate of $12.68 billion.
  • Keytruda sales jumped 28% to $3.99 billion, and the company estimates that the negative impact of the COVID-19 pandemic on pharmaceutical revenue was about $400 million.
  • For the fiscal year 2021, Merck forecasts sales between $51.8 billion and $53.8 billion and adjusted EPS in the range of $6.48 and $6.68, both in line with a consensus of $51.8 billion and $6.41, respectively. MRK anticipates GAAP EPS in the range of $5.52 and $5.72.
  • The company expects Organon spinoff, an entity focused on women's health and biosimilars, in the late second quarter of 2021. 
  • Concurrently, Kenneth C. Frazier, Chairman & CEO of the Company, has announced to retire as CEO, effective June 30, but he will continue to serve as Executive Chairman.
  • Merck's board has elected Robert M. Davis, current CFO & EVP, Global Services, as the new CEO and board member, effective July 1. Mr. Davis will become president of Merck, effective April 1.
  • Price Action: MRK shares increased marginally by 0.1% at $77.40 in premarket trading on the last check Thursday.
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Posted In: BiotechEarningsNewsGuidanceHealth CareManagementTop StoriesGeneral
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