Healthcare giant Merck & Co., Inc. (NYSE:MRK) this morning posted better-than-expected Q3 results, lifted its 2016 outlook, and provided a bullish update on a key cancer treatment.
The Kenilworth, NJ-based company reported Q3 EPS of $1.07, beating out Wall Street’s $0.99 estimate. Revenue rose 4.6% from last year to $10.54 billion, also topping analysts’ view of $10.18 billion.
Looking ahead, MRK boosted its full-year earnings outlook to a range of $3.71-3.78 per share, up from $3.67-3.77. Analysts are looking for $3.75 per share for the year. Merck guided full-year revenue of $39.7 to $40.2 billion, up from a prior range of $39.1 to $40.1 billion and above Wall Street’s view of $39.69 billion.
In drug news, Merck said sales of its cancer-fighting immunotherapy treatment Keytruda rose to $356 million in the third quarter, which was just shy of estimates. The FDA just yesterday approved two supplemental Biologics License Applications (sBLA) for Keytruda in lung cancer, as well.
The company commented via press release:
“The latest achievements for KEYTRUDA and other recent regulatory approvals across our portfolio show that our innovation strategy is working,” said Kenneth C. Frazier, chairman and chief executive officer, Merck. “We are confident that our focus on the science, along with continued commercial execution, will drive long-term results for the company and our shareholders.”
Merck shares rose $0.86 (+1.42%) to $61.61 in premarket trading Tuesday. Prior to today’s report, MRK had gained 15%, more than doubling the 5.41% return of the benchmark S&P 500 during the same period.