Merck (MRK) saw its shares climb 1.5% in premarket trading Thursday after the pharma company hiked its outlook for the fiscal year 2024.
For Q1 2024, Merck reported earnings per share (EPS) at $2.07, surpassing analysts' expectations of $1.93. The company’s revenue for the quarter was $15.8 billion, exceeding the consensus estimates of $15.22 billion.
The adjusted gross margin for the quarter stood at 81.2%, an improvement from 76.9% year-over-year and higher than the estimated 80.4%.
For the full year 2024, Merck has updated its EPS forecast to range between $8.53 and $8.65, previously anticipated to be between $8.44 and $8.59. This revised forecast compares to a consensus estimate of $8.56.
The company also adjusted its revenue expectations to between $63.1 billion and $64.3 billion, up from a prior range of $62.7 billion to $64.2 billion, against a consensus of $63.8 billion.
In addition, Merck now projects its adjusted gross margin for the year to be about 81%, revised from an earlier estimate of about 80.5% and above the consensus estimate of 80.6%.
“We drove strong growth across key therapeutic areas, executed strategic business development, and in the U.S., we are now launching WINREVAIR, a significant new product in the cardiometabolic space for adults with pulmonary arterial hypertension, a progressive and debilitating disease," said CEO Robert M. Davis.