Merck (MRK), Sanofi (SNY) raise profit guidance after solid Q3 results

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Merck (MRK), Sanofi (SNY) raise profit guidance after solid Q3 results

 Merck (MRK), Sanofi (SNY) raise profit guidance after solid Q3 results
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  • Merck & Company, Inc’s (MRK) sales rose 20% YoY in Q3, FY21.

  • Merck expects its adjusted annual profit to be between US$5.65 per share and US$5.70 per share.

  • Sanofi (SNY) sales surged 10.1% YoY in Q3, FY21.

Stocks of Merck & Company, Inc. (NYSE: MRK) and Sanofi (NASDAQ: SNY) gained traction on Thursday morning after reporting strong third-quarter results before the opening bell.

The MRK stock was priced at US$82.77, up 1.51%, while the SNY stock traded at US$49.96, up 0.79%, from their previous closing prices in the premarket.

Earnings highlights

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Merck & Company, Inc. (NYSE: MRK)

Merck & Company is a global pharmaceutical company based in Kenilworth, New Jersey, and manufactures various prescription drugs.

The company raised the fiscal 2021 profit target after robust gains in the cancer drug segment.

Its worldwide sales were US$13.15 billion in Q3, FY21, an increase of 20% from the year-ago quarter. Its GAAP net income surged 97% YoY to US$4.56 billion.

The non-GAAP EPS was US$1.75 per share compared to US$1.37 per share in the year-ago quarter, beating analysts' expectations of US$1.55 per share, according to Refinitiv data.

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Cancer drug Gardasil sales rose 68% YoY to US$1.99 billion, exceeding estimates of US$1.35 billion. Merck expects its adjusted profit to be between US$5.65 and US$5.70 per share, from its previous projection of US$5.47 and US$5.57 per share.

It has a market cap of US$206.40 billion, a P/E ratio of 37.23, and a forward P/E one year of 14.36. Its EPS is US$2.19. The 52-week highest and lowest stock prices were US$85.60 and US$15.32, respectively. Its trading volume was 8,465,377 on October 27.

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Merck & Company (MRK) and Sanofi (SNY) reported strong quarterly results

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Sanofi (NASDAQ: SNY)

Sanofi is a global healthcare company based in Paris. It develops various therapeutic solutions.

The firm raised its profit guidance for fiscal 2021 after reporting its quarterly results, driven by strong demand for its Eczema and Dupixent drugs and flu vaccines.

The company’s sales increased by 10.1% YoY to €10.43 billion in Q3, FY21. Its net income came in at €2.34 billion compared to €1.95 billion in the year-ago quarter.

Sanofi reported earnings of €2.18 per share, beating analysts' estimates of €1.99.

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The company expects the fiscal 2021 EPS to grow by around 14% at constant currencies, from its already improved previous forecast of 12%.

Its market cap is US$124.44 billion, the P/E ratio is 18.03, and the forward P/E one year is 12.98. Its EPS is US$2.75. The stock saw the highest price of US$54.26 and the lowest price of US$44.76 in the last 52 weeks. Its share volume on October 27 was 2,130,837.

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Both the stocks saw considerable gains in recent months driven by strong demand for their products. The MRK stock was up 4.36% YTD, while the SNY stock rose 1.68% YTD. In contrast, the S&P healthcare stock segment gained 15.67% YTD while increasing 3.20% QTD.


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