Merck beats by $0.04, reports revs in-line; guides FY18 EPS in-line, revs above consensus
- Reports Q4 (Dec) earnings of $0.98 per share, $0.04 better than the Capital IQ Consensus of $0.94; revenues rose 3.1% year/year to $10.43 bln vs the $10.48 bln Capital IQ Consensus.
- The non-GAAP gross margin was 74.6 percent for the fourth quarter of 2017, compared to 74.8 percent for the fourth quarter of 2016.
- Sales grew 1 percent, on top of a 5 percent sales increase in the year-ago quarter, reflecting increases in the International, Lifestyle and Cleaning segments, supported by the benefit of price increases and partially offset by unfavorable mix. Second quarter sales also included a reduction of nearly 1 point from the sale of the Aplicare business in late August 2017. Volume grew 1 percent, on top of 8 percent volume growth in the year-ago quarter, largely driven by gains in the Cleaning and Lifestyle segments.
- Co issues guidance for FY18, sees EPS of $4.08-4.23 vs. $4.11 Capital IQ Consensus Estimate; sees FY18 revs of $41.2-42.7 bln vs. $41.1 bln Capital IQ Consensus Estimate.