Wall Street will navigate a series of key S&P 500 earnings Thursday as investors look to forward projections from a host of companies amid concerns of rising inflation, Federal Reserve rate hikes and slowing consumer growth.
The following is a rolling update of the key releases prior the start of trading:
- MERCK & Co.
Merck (MRK) shares edged lower after the drugmaker posted stronger-than-expected fourth quarter earnings thanks in part to sales of its blockbuster Keytruda cancer treatment and the recent emergency approval of its Covid antiviral pill.
Merck said adjusted earnings for the three months ending in December came in at $1.80 per share, up 36.4% from the same period last year and firmly ahead of the Street consensus forecast of $1.53 per share. Group revenues, Merck said, rose 24% to $13.5 billion, topping the $13.1 billion tally forecast by analysts that cover the group.
Annual Keytruda sales surged 20% from last year to $17.2 billion, Merck said, and were up 15% on the quarter at $4.6 billion. Sales of its Covid antiviral pill molnupiravir, which it developed with Ridgeback Theraputicis, saw sales of $970 million.
Looking into 2022, Merck said it sees full-year non-GAAP earnings in the range of $7.12 to $7.27 per share, with revenues in the range of $56.1 billion to $57.6 billion.
Merck shares were marked 2.1% lower in early Thursday trading following the earnings release to change hands at $80.30 each.
- Eli Lilly & Co.
Elli Lilly (LLY) shares fell following a solid set of fourth quarter numbers that included a big boost in Trulicity sales and more than a $1 billion in revenues for its Covid antibody therapies.
Adjusted profits for the three months ending in December rose 8% to $2.49 per share, matching the Street consensus forecast, while revenues jumped 8% to $8 billion, just ahead of analysts' forecasts of a $7.73 billion tally.
Trulicity, the group's blockbuster diabetes treatment, saw sales up 25% to $1.88 billion, while Covid therapy revenues rose 22% to $1.06 billion, nearly doubling Street forecasts.
Looking into the 2022 year, Eli Lilly reaffirmed its guidance for non-GAAP earnings of between $8.50 and $8.65 per share, with revenues in the region of $27.8 billion to $28.3 billion.
Elli Lilly shares were marked 3% lower at $244.30 each, nudging the stock into negative territory for the past six months.
- Honeywell International
Honeywell (HON) shares slumped lower after a muted fourth quarter earnings reported and a disappointing outlook for 2022 profits amid ongoing supply-chain snarls.
Honeywell said adjusted earnings for the three months ending in December were pegged at $2.05 down 1% from last year and bang in line with the Street consensus forecast. Group revenues slipped 2.2% to $8.7 billion.
Looking into the current financial year, Honeywell said it sees revenues of between $35.4 billion and $36.4 billion, organic sales growth of between 4% and 7% and adjusted earnings in the region of $8.4 to $8.70 per share, a figure that's around 25 cents shy of the Refinitv forecast.
Honeywell shares were marked 6% lower at $201.00 each, extending its six-month decline to 16.2%
- Estee Lauder Companies
Estee Lauder (EL) shares fell after the luxury group boosted its 2022 outlook thanks in part to solid demand for skincare and fragrances.
The owner of Michael Kors, Donna Karan and Tommy Hilfinger brands said non-GAAP earnings for the three months ending in December, the group's fiscal second quarter, were pegged at $3.01 per share, up 15.3% from the same period last year and firmly ahead of the Street consensus forecast of $2.64 per share. Group revenues matched forecasts at $5.54 billion.
The luxury group also raised its fiscal 2022 forecast and sees net sales rising between 13% and 16% and adjusted earnings between $7.43 and $7.58 per share.
Estee Lauder shares were marked 3.8% lower at $320.00 each, pushing the stock into a six-month decline of 6.3%.
- Biogen Inc.
Biogen (BIIB) shares moved after the drugmaker's 2022 profit forecast fell shy of Street estimates
Earlier this month, the U.S. Centers for Medicare and Medicaid Services said it will only cover treatment with Aduhelm, Biogen's Alzheimer's treatment, if patients are enrolled in a clinical trial. Biogen's move late last month to slash the price of Aduhelm by around 50%, to $28,200 per year, in order to help expand its potential reach.
Biogen said Aduhelm brought in just $1 million in Q4 sales, against a total bottom line of $2.73 billion, a figure that will be complicated in 2022 by Biogen's move to slash the price of Aduhelm by around 50%, to $28,200 per year, in order to help expand its potential reach..
The drugmaker sees 2022 revenues of $10.98 billion and adjusted earnings of $14.25 to $16.00 each, a tally that fell notably shy of the Refinitiv forecast of $18.83 per share.
Biogen shares were marked 32.65% lower at $218.00 each, extending its six-month slump to 35.2%.
