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Eli Lilly (LLY) Tops Q3 Earnings & Sales, Ups 2017 View

Zacks Equity Research

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

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