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Eli Lilly (LLY) Tops Q4 Earnings & Sales, Ups 2018 View

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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), Humalog (diabetes), 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, Basaglar, Lartruvo and Taltz in its portfolio which are driving revenues.

Lilly’s earnings performance has been mixed with earnings beating expectations in three of the last four quarters while missing the same in one, bringing the average negative surprise to 1.68%.

Currently, Lilly 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: Lilly beat on fourth quarter earnings. The company reported EPS of $1.14 per share while our consensus called for EPS of $1.08.

Revenues Beat: Revenues also beat expectations. Lilly posted revenues of $6.16 billion, compared to our consensus estimate of $5.96 billion.

2018 EPS Outlook Upped: Lilly raised its previously issued 2018 adjusted earnings outlook – reflecting the anticipated impact of tax reduction in the United States. Adjusted earnings per share are now expected in the range of $4.81 to $4.91 compared with $4.60 to $4.70 expected previously. The company continues to expect revenues in the range of $23.0 billion and $23.5 billion. The Zacks Consensus Estimate for earnings and revenues is $4.65 per share and $23.19 billion, respectively.

Additional Data: During the quarter, line extension of Taltz in active psoriatic arthritis in the United States and Europe. The company has also launched the drug in this indication in the United States. Moreover, Cyramza improved progression free survival in a phase III study in patients with gastric or pancreatic cancer.

Stock Price Impact: Shares were up 0.7% in pre-market trading.

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

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