Eli Lilly and Company (LLY - Free Report) is one of the few stocks that is breaking out to new multi-year highs in 2020. This Zacks Rank #1 (Strong Buy) is still expected to see double digit earnings growth in 2020, despite the coronavirus.
Lilly is a global drug manufacturer with an interest in diabetes, oncology, immunology and neuroscience.
Another Beat in the First Quarter
On Apr 23, Eli Lilly reported first quarter results and beat on the Zacks Consensus by $0.20. Earnings were $1.75 versus the consensus of $1.55.
It was the company's fifth consecutive earnings beat.
Revenue rose 15% as volume growth jumped 22%.
Lilly saw strong underlying demand for key growth products, including Trulicity, Taltz, Verzenio, Jardiance, Emgality,
Olumiant, Basaglar, Tyvyt, Cyramza, and Baqsimi,
These products contributed 19 percentage points of revenue growth and represented approximately 51% of total revenue.
Instead of being hurt by the COVID-19 crisis in the first quarter, it was helped as customers rushed out to stock up on their medicines as the shutdowns hit.
Still Issued Full Year Guidance
Lilly is one of the few companies that is NOT withdrawing its full year guidance although it did warn that its financial performance could still be hit by the virus in later quarters as the total impacts are still uncertain.
For that reason, while it provided full year EPS guidance, it did widen the guidance range it had given previously, to between $6.70-$6.90.
The analysts remain bullish, however, as 3 raised their estimates after the earnings report.
The Zacks Consensus is up $0.04 to $6.81 over the last week.
That's 2020 earnings growth of 12.8%.
Additionally, analysts are bullish on 2021 with 3 estimates being revised higher there as well.
The 2021 Zacks Consensus jumped to $8.02 from $7.92 over the prior 7 days. That's another 17.8% earnings growth.
Shares Soar to New Highs
Are the shares simply too expensive now?
Shares busted out to new 5-year highs while the rest of the stock market was sinking due to the coronavirus sell-off.
They're up 19.7% year-to-date.
Eli Lilly has a forward P/E of 23.7.
It's also still paying its dividend, which is currently yielding 1.8%.
For investors looking for somewhere to "hide out" during this uncertain year, Eli Lilly is one to keep on your short list.
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Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
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