MRK Q3 2016 Earnings Report — Merck & Co., Inc. Revenue & Financial Results | Market Cap Arena

Merck & Co., Inc.MRK

Q3 2016 Earnings

Reported November 7, 2016

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q3 2016	Q2 2016	Q3 2015	QoQ Change	YoY Change
Revenue	$10.5B	$9.8B	—	7.0%	—
Op. Income	$3.1B	$1.7B	—	85.3%	—
Gross Margin	67.6%	63.7%	—	4.0pp	—
Net Margin	20.7%	12.2%	—	8.5pp	—
EPS (Diluted)	$0.78	$0.43	—	81.4%	—
Free Cash Flow	$2.6B	$1.2B	—	106.6%	—

Revenue Flow

Item	Amount
REVENUE	$10.5B
Cost of Revenue	$3.4B
GROSS PROFIT	$7.1B
R&D Expenses	$1.7B
Selling & Marketing	$2.4B
General & Administrative	$0
SG&A Expenses	$2.4B
Other Expenses	$0
Operating Expenses	$4.1B
Cost & Expenses	$7.5B
OPERATING INCOME	$3.1B
Interest Income	$87M
Interest Expense	$170M
Other Income/Expenses	-$183M
INCOME BEFORE TAX	$2.9B
Income Tax Expense	$699M
Net Income from Continuing Ops	$2.2B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$2.2B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$2.2B
D&A	$1.2B
EBIT	$3.1B
EBITDA	$4.2B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$10.5B
Cost of Revenue	$3.4B
GROSS PROFIT	$7.1B
R&D Expenses	$1.7B
Selling & Marketing	$2.4B
General & Administrative	$0
SG&A Expenses	$2.4B
Other Expenses	$0
Operating Expenses	$4.1B
Cost & Expenses	$7.5B
OPERATING INCOME	$3.1B
Interest Income	$87M
Interest Expense	$170M
Other Income/Expenses	-$183M
INCOME BEFORE TAX	$2.9B
Income Tax Expense	$699M
Net Income from Continuing Ops	$2.2B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$2.2B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$2.2B
D&A	$1.2B
EBIT	$3.1B
EBITDA	$4.2B
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$2.2B
Depreciation & Amortization	$1.2B
Stock-Based Compensation	$77M
Deferred Income Tax	$55M
Other Non-Cash Items	$39M
Change in Working Capital	-$564M
OPERATING CASH FLOW	$3.0B
Capital Expenditure	-$409M
Acquisitions (Net)	-$621M
Purchases of Investments	-$3.7B
Sales/Maturities of Investments	$3.9B
Other Investing Activities	-$43M
NET CASH FROM INVESTING	-$890M
Net Debt Issuance	$883M
Common Stock Repurchased	-$845M
Common Dividends Paid	-$1.3B
Other Financing Activities	$401M
NET CASH FROM FINANCING	-$835M
FREE CASH FLOW	$2.6B
Net Change in Cash	$1.3B

Balance Sheet

Item	Amount
Cash & Equivalents	$7.9B
Short-Term Investments	$5.2B
Net Receivables	$7.4B
Inventory	$5.2B
Other Current Assets	$3.8B
TOTAL CURRENT ASSETS	$29.4B
PP&E (Net)	$12.0B
Goodwill	$18.3B
Intangible Assets	$20.5B
Long-Term Investments	$11.7B
Tax Assets	$0
Other Non-Current Assets	$6.4B
TOTAL NON-CURRENT ASSETS	$68.9B
TOTAL ASSETS	$98.3B
Account Payables	$2.5B
Short-Term Debt	$1.5B
Deferred Revenue	$0
Other Current Liabilities	$0
TOTAL CURRENT LIABILITIES	$15.6B
Long-Term Debt	$23.7B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$6.4B
Other Non-Current Liabilities	$8.8B
TOTAL NON-CURRENT LIABILITIES	$38.8B
TOTAL LIABILITIES	$54.4B
Common Stock	$1.8B
Additional Paid-In Capital	$39.9B
Retained Earnings	$46.0B
Treasury Stock	-$39.7B
Accum. Other Comp. Income	-$4.3B
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$43.7B
Minority Interest	$213M
TOTAL EQUITY	$44.0B
TOTAL LIABILITIES & EQUITY	$98.3B
Total Debt	$25.1B
Net Debt	$17.2B