MERCK Reports Fourth Quarter FY2022 Earnings for Year-End December 31, 2022.

Earnings Overview

On February 2 2023, MERCK ($NYSE:MRK) announced their earnings for the fourth quarter of FY2022 (ending December 31 2022), which showed a total revenue of USD 3.0 billion, a 19.7% decrease compared to the same quarter in the previous year. Net income was USD 13.8 billion, a 2.3% increase year over year.

Transcripts Simplified

Merck‘s fourth quarter revenues were $13.8 billion, an increase of 2% excluding the impact from foreign exchange. Human Health and Animal Health businesses both grew 9% and 6%, respectively. Key brands in Oncology saw KEYTRUDA grow 26% to $5.5 billion. Vaccines portfolio grew 6% with GARDASIL increasing to $1.5 billion, driven by demand in major ex-U.S. markets.

Hospital Acute Care sales benefited from the resupply of ZERBAXA, which started in the fourth quarter of 2021. Animal Health sales increased 6%, reflecting strategic price actions and volume growth.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Merck. merck-reports-fourth-quarter-fy2022-earnings-for-year-end-december-31,-2022.”>More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Merck. merck-reports-fourth-quarter-fy2022-earnings-for-year-end-december-31,-2022.”>More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Merck. merck-reports-fourth-quarter-fy2022-earnings-for-year-end-december-31,-2022.”>More…

Key Ratios Snapshot

Some of the financial key ratios for Merck are shown below. merck-reports-fourth-quarter-fy2022-earnings-for-year-end-december-31,-2022.”>More…

Stock Price

The stock opened at $104.0 and closed at $103.5, down by 3.3% from its last closing price of 107.0. Although the stock dipped, MERCK continues to remain a strong leader in the healthcare and pharmaceutical industry, providing an array of innovative products and services to its customers worldwide. The company reported strong revenue and earnings for the fourth quarter as well as for the full year. This is indicative of a strong performance for the company in FY2022. Despite the dip in stock prices, investors continue to show confidence in the company’s ability to deliver value to shareholders.

MERCK is focused on continuing to offer innovative products and services that help to improve the lives of its customers around the world. This dedication to excellence is why the company remains one of the strongest competitors in the healthcare and pharmaceutical industry. With their strong financial performance and focus on innovation, MERCK is well poised to continue its success for many years to come. merck-reports-fourth-quarter-fy2022-earnings-for-year-end-december-31,-2022.”>Live Quote…

Analysis

GoodWhale is here to help you analyze MERCK’s fundamentals. After diving deep into its financial and business records, we rate it as a medium risk investment. This is based on our Risk Rating system, which assesses the company’s overall financial health and sustainability. We have identified 3 potential risk warnings. These are related to its income sheet, balance sheet, and non-financial aspects. We think that these points should be considered before investing in MERCK. If you want to get a closer look at these findings, you can register for our platform, goodwhale.com. We provide detailed insights into hundreds of companies’ financial health. merck-reports-fourth-quarter-fy2022-earnings-for-year-end-december-31,-2022.”>More…

Peers

In the pharmaceutical industry, Merck & Co Inc is up against some stiff competition. Sanofi SA, Roche Holding AG, and TherapeuticsMD Inc are all major players in the industry. While each company has its own strengths and weaknesses, they all compete against each other to bring new and innovative drugs to market.

– Sanofi SA ($LTS:0O59)

As of 2022, Sanofi SA has a market capitalization of 102.29 billion euros and a return on equity of 7.56%. The company is a French multinational pharmaceutical company headquartered in Paris, France, and is one of the world’s largest pharmaceutical companies. Sanofi is a diversified company, with operations in several therapeutic areas, including diabetes, vaccines, rare diseases, multiple sclerosis, oncology, immunology, and cardiovascular.

– Roche Holding AG ($LTS:0TDF)

Roche Holding AG, a Swiss multinational healthcare company, has a market cap of 270.34B as of 2022. The company’s Return on Equity is 47.83%. Roche is a leader in research-focused healthcare with combined strengths in pharmaceuticals and diagnostics. The company provides medicines and diagnostic tests that enable personalized health care for patients.

– TherapeuticsMD Inc ($NASDAQ:TXMD)

TherapeuticsMD Inc. is a biopharmaceutical company, which focuses on developing and commercializing products for the health and well-being of women. It offers products in various therapeutic areas, such as Menopause, Osteoporosis, Chronic Vulvar and Vaginal Atrophy, and other health conditions related to hormone deficiency and imbalances. The company was founded by Robert G. Finizio, George S. Paletta, and Douglas S. Leighton in 2010 and is headquartered in Boca Raton, FL.

Summary

MERCK reported their fourth quarter FY2022 earnings on February 2 2023, showing a total revenue of USD 3.0 billion and a net income of USD 13.8 billion. The total revenue was 19.7% lower than the same quarter in the previous year, however net income increased by 2.3%. On the same day, stock price decreased in response to the earnings report.

Investors may be wary of MERCK’s future prospects with the decrease in total revenue and uncertainty surrounding the potential for further growth. Analysts are advised to take a closer look at MERCK’s balance sheet to determine its stability and prospects for the long-term.