Merck KGaA to Release Third Quarter Results
Germany's Merck KGaA is set to announce its financial results for the third quarter on Thursday. Here are the key details:
Sales Forecast
Analysts anticipate that the pharmaceutical and chemicals group will report net sales of 5.19 billion euros ($5.55 billion) for the third quarter, as per consensus estimates compiled by the company. In the same period last year, Merck recorded net sales of EUR5.81 billion.
Earnings Forecast
Merck's earnings before interest, taxes, depreciation, amortization, and one-off items are projected to reach EUR1.39 billion, according to the company-provided consensus. The company reported an Ebitda excluding one-off items of EUR1.81 billion for the same period last year.
What to Watch
Outlook
Merck recently reiterated its guidance for 2023, with net sales expected to range from a 2% decline to a 2% rise on an organic basis. Additionally, Ebitda excluding one-off items is forecasted to fall between 3% and 9%. While it is expected that the guidance will remain unchanged, JPMorgan analysts suggest that the company may indicate results at the lower end of its ranges.
Divisional Trends
Questions may arise regarding the outlook for Merck's process-solutions business, given recent mixed trends reported by peers in the industry. Lonza Group has revised its guidance for 2024, while Sartorius has noted signs of a modest recovery, according to UBS analyst Colin White. Furthermore, investors will be monitoring any indications of when the semiconductor cycle will hit its lowest point, as Merck's electronics customers have tempered their expectations for next year. Merck has confirmed it is considering job cuts within its electronics division as part of a cost-saving plan amidst an extended market downturn.
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