Merck (MRK) Tops Q3 EPS by 8c, Lifts FY EPS Gudiance
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(Updated - October 27, 2017 6:49 AM EDT)
Merck (NYSE: MRK) reported Q3 EPS of $1.11, $0.08 better than the analyst estimate of $1.03. Revenue for the quarter came in at $10.3 billion versus the consensus estimate of $10.55 billion.
Merck has narrowed and raised its full-year 2017 GAAP EPS range to be between $1.78 and $1.84. Merck narrowed and raised its full-year 2017 non-GAAP EPS range to be between $3.91 and $3.97, including a less than 1 percent negative impact from foreign exchange at current exchange rates. The non-GAAP range excludes acquisition- and divestiture-related costs, costs related to restructuring programs, a charge related to the formation of the collaboration with AstraZeneca and certain other items.
Merck has narrowed and raised its full-year 2017 revenue range to be between $40.0 billion and $40.5 billion, including a less than 1 percent negative impact from foreign exchange at current exchange rates.
The following table summarizes the company’s 2017 financial guidance.
|Revenue||$40.0 to $40.5 billion|
$40.0 to $40.5 billion*
|Operating expenses||Lower than 2016||Higher than 2016 by a mid-single digit rate|
|Effective tax rate||24.5% to 25.5%||20.0% to 21.0%|
|EPS||$1.78 to $1.84||$3.91 to $3.97|
*The company does not have any non-GAAP adjustments to revenue.
A reconciliation of anticipated 2017 GAAP EPS to non-GAAP EPS and the items excluded from non-GAAP EPS are provided in the table below.
$ in millions, except EPS amounts
|GAAP EPS||$1.78 to $1.84|
|Non-GAAP EPS that excludes items listed below2||$3.91 to $3.97|
|Acquisition- and divestiture-related costs||$3,800|
|Aggregate charge related to the formation of the collaboration with AstraZeneca||2,350|
|Net decrease (increase) in income before taxes||7,000|
|Estimated income tax (benefit) expense||(1,130)|
|Decrease (increase) in net income||$5,870|
The expected full-year 2017 GAAP effective tax rate of 24.5 to 25.5 percent reflects an unfavorable impact of approximately 4.5 percentage points from the above items.
(Street sees FY EPS of $3.87 on revenue of $40.32 billion)
For earnings history and earnings-related data on Merck (MRK) click here.
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