Merck (NYSE: MRK) stock was the very picture of health on Thursday. Investors were pleased with the first quarter earnings report, which saw a huge price increase for this large pharmaceutical company.
Merck revealed that it took in $15.9 billion in sales for the period, a robust 50% higher on a year-over-year basis. Non-GAAP (adjusted) net income swelled even more, rising 84% to over $5.4 billion, or $2. 14 per share.
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Both were significantly higher than the typical analyst estimate. Prognosticators tracking Merck stock had been modeling barely over $14.7 billion on the top line and $1. 83 in adjusted, per-share net profit.
Merck’s CEO Robert Davis stated in the earnings release that “robust” quarter results were due to significant clinical advances in Merck’s research pipeline, and efficient commercial execution across many key growth drivers. “
Davis added that they remain focused on driving their strategy which is based in science and believe in the viability of our growth prospects. “
Merck believes that this is a sign of better-than-expected growth. It has raised and tightened its guidance for both revenue and profitability for the entirety of 2022.
The new projection for sales for the year is $56.9 billion to $58.1 billion. If achieved, it would mean at least a 17% improvement over the 2021 figure. They should be at $7 for per-share adjusted earnings. 24 to $7. 36, which is a minimum of 20% above last year’s $6.02.
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