Merck KGaA is set to release its second-quarter results on Aug. 3, providing insights into the German health and technology company’s performance. Let’s take a look at the key details:
Consensus estimates from FactSet suggest that sales for the second quarter are expected to decline to 5.22 billion euros ($5.73 billion) from the previous year’s EUR5.57 billion.
Net Income Forecast
FactSet’s consensus also indicates a projected decrease in net income to EUR758 million, compared to EUR867 million in the second quarter of 2022.
EBITDA Pre Forecast
According to FactSet, EBITDA Pre, a metric excluding certain one-off items, is anticipated to reach EUR1.50 billion, down from EUR1.78 billion in the previous year.
What to Watch
Life Science Business
Analysts at Morgan Stanley note that Merck’s Life Science division may continue to face challenges in the second quarter due to ongoing trends of inventory de-stocking. The company had previously warned about this during its first-quarter results call.
Given Merck’s statement in the first quarter that the trough of profitability for its Electronics business could occur during the second quarter, investors will keep a close eye on this segment. A softening in the Semiconductor Solutions division is believed to be a contributing factor.