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Eli Lilly (LLY) Tops on Q2 Earnings & Revenues

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Indianapolis, IN based Eli Lilly and Company (LLY - Free Report) is a global healthcare company with core products in a number of primary-care pharmaceutical markets. Lilly generates revenues from its pharmaceutical product and animal health segments.

The company’s portfolio includes Zyprexa (schizophrenia and bipolar disorder), Gemzar (pancreatic cancer), Evista (osteoporosis), Cymbalta (depression), Cialis (erectile dysfunction), Strattera (attention deficit hyperactivity disorder - ADHD), Erbitux (cancer) and Alimta (chemotherapy). Lilly also has a strong presence in the diabetes market.

However, many of its key products are facing generic competition. Nevertheless, products like Trajenta, Cialis, Forteo, Strattera, Erbitux, and the animal health segment should help partially offset the impact of genericization. The company also has some new products in its portfolio which should start contributing to revenues.

LLY’s earnings track record has been pretty good with the company delivering positive earnings in three of the last four quarters with an average surprise of 9.42%.

Currently, LLY has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings Beat: LLY topped on second quarter earnings by a penny. The company reported EPS of 86 cents while our consensus called for EPS of 85 cents.

Revenue Beat: Revenues also topped expectations. Lilly posted revenues of $5.4 billion, compared to our consensus estimate of $5.1 billion.

Maintains 2016 Outlook: LLY continues to expect 2016 revenues of $20.6 - $21.1 billion and earnings of $3.50 - $3.60 per share. The Zacks Consensus Estimate for earnings and revenues is $3.56 per share and $20.91 billion, respectively.

Updates Long-Term Outlook: Lilly provided updated financial expectations through the remainder of the decade – the company expects at least 5% average annual revenue growth driven by volume, along with higher gross margin, both on a constant currency basis. Lilly also intends to return to annual dividend increases for shareholders and reiterated its commitment to achieve an OPEX-to-revenue ratio of 50% or less in 2018.

Check back later for our full write up on this LLY earnings report later!

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