ELAN - Merck: Positive Developments But Watch The Q2 Earnings
2024-07-12 04:56:56 ET
Summary
- Merck's price rise might have stalled in the past quarter, but at least for now, there's potential for some upswing again.
- Keytruda continues to drive revenue growth, and expansion in its usage along with positive news on other treatments and an acquisition related bump up too, the sales outlook is healthy.
- Concerns arise, however, regarding the earnings outlook due to the acquisition of Eyebiotech, which can impact non-GAAP EPS and potentially reduce guidance.
- So far, the acquisition costs aren't enough to materially affect the forward P/E relative to the stock's five-year average, though.
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Merck: Positive Developments, But Watch The Q2 Earnings