(Bloomberg) -- Merck KGaA raised its earnings forecast for the year amid strong demand for its pharmaceutical and electronics businesses, showing its post-Covid pivot is picking up steam.
The German company now expects adjusted earnings of €8.20 ($8.91) to €9.30 per share this year, up from a previous range of €8.05 to €9.10, according to a statement late Friday.
Merck cited a “very strong operating performance” of its health care and electronics divisions compared to consensus estimates. The life science division is performing as expected, it said.
Merck reported second-quarter sales of €5.35 billion, slightly ahead of the €5.23 billion average of analyst estimates.
Merck has struggled to reignite growth after its pandemic-era boom, when its life science division churned out components needed for Covid tests, therapies and vaccines. Long a growth engine, that arm has been facing sluggish demand for its raw materials, drug-delivery compounds and services to drugmakers and biotechnology companies.
Meanwhile, the company’s health-care division is benefiting from strong demand for the multiple sclerosis drug Mavenclad and cancer drug Bavencio.
The electronics division — Merck’s smallest — had been waiting for a rebound in the market for semiconductor components.
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