Merck KGaA Earnings: Electronic and Life Science Turnarounds Starting in 2024

Narrow-moat Merck KGaA's first-quarter results included the beginning of a turnaround in electronics and some positive signs in the life science business that should start turning around in the second half of the year, if only for easier comparable results. Management also gave initial guidance ranges for revenue and adjusted EPS that look roughly in line with our view of the firm's prospects in 2024. At first glance, we do not anticipate changing our fair value estimate, and shares appear to be rising toward fair value on this news.