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 like Cymbalta and Alimta are facing generic competition. The company also has some new products like Trulicity, Cyramza, Jardiance, and Taltz in its portfolio which have started contributing to revenues.
Lilly’s earnings performance has been mixed with earnings missing expectations in two of the last four quarters, while beating in the other two, bringing the average negative surprise to 2.28%.
Currently, Lilly has a Zacks Rank #2 (Buy), 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: Lilly beat on second quarter earnings. The company reported EPS of $1.11 while our consensus called for EPS of $1.04.
Revenues Beat: Revenues also beat expectations. Lilly posted revenues of $5.82 billion, compared to our consensus estimate of $5.59 billion.
Upped 2017 Outlook: Lilly raised its previously issued 2017 adjusted earnings and sales outlook. Adjusted earnings per share are now expected in the range of $4.10 to $4.20 versus $4.05 to $4.15 previously. Revenues are expected in the range of $22.0–$22.5 billion higher than $21.8–$22.3 billion expected previously. The Zacks Consensus Estimate for earnings and revenues is $4.12 per share and $22.18 billion, respectively.
Stock Price Impact: Shares declined around 1% in pre-market trading.
Concurrent with the earnings release, Lilly announced that the new drug application (NDA) resubmission for its rheumatoid arthritis drug baricitinib will not occur this year and will be delayed by a minimum of 18 months. We remind investors that Lilly and partner Incyte received a complete response letter (CRL) from the FDA in April regarding the NDA for baricitinib. The pipeline setback propelled the share price decline despite the earnings and sales beat in the quarter
Check back later for our full write up on this Lilly earnings report later!
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