Indianapolis, IN based Eli Lilly and Company LLY, 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 are driving revenues.
Lilly’s earnings performance has been mixed with earnings missing expectations in two of the last four quarters while beating the same in the other two, bringing the average negative surprise to 0.89%.
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 third quarter earnings. The company reported EPS of $1.05 per share while our consensus called for EPS of $1.03.
Revenues Beat: Revenues also beat expectations. Lilly posted revenues of $5.66 billion, compared to our consensus estimate of $5.52 billion.
2017 Outlook Upped: Lilly raised its previously issued 2017 adjusted earnings and sales outlook – for the second time this year. Adjusted earnings per share are now expected in the range of $4.15 to $4.25 compared with $4.10 to $4.20 expected previously. Revenues are expected in the range of $22.4 billion and $22.7 billion, up from $22.0–$22.5 billion expected previously. The Zacks Consensus Estimate for earnings and revenues is $4.15 per share and $22.43 billion, respectively.
Strategic Initiatives: Concurrent with the earnings release, Lilly said it is exploring strategic alternatives for the Elanco Animal Health business including a spin-off, sale, merger or creating a separate company through an initial public offer. A decision regarding the same is expected to be made by middle of next year and Lilly may ultimately opt to retain the business.
Stock Price Impact: Shares were up 1.5% in pre-market trading.
Check back later for our full write up on this Lilly earnings report later!
Eli Lilly and Company Price and Consensus
Eli Lilly and Company Price and Consensus | Eli Lilly and Company Quote
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research