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 the key products in the company’s portfolio are facing generic competition. Nevertheless, products like Humalog, Humulin, Trajenta, Cialis, Forteo and Alimta and the animal health business should help partially offset the impact of genericization. The company also has some new products in its portfolio which should start contributing to revenues.
Eli Lilly expects multiple regulatory actions, submissions and late-stage data readouts in 2015. Eli Lilly is also working on controlling costs.
LLY’s earnings track record has been mixed with the company delivering positive earnings surprises in two of the last four quarters with an average surprise of 1.1%. Estimate revisions are mostly negative with analysts lowering their estimates for 2015.
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:
Marginal Earnings Beat: LLY beat on fourth quarter earnings by a penny. Our consensus called for EPS of 74 cents, and the company reported EPS of 75 cents.
Revenues Slightly Above Expectations: Revenues were also just above expectations. Eli Lilly posted revenues of $5.121 billion, compared to our consensus estimate of $5.108 billion.
Key Stats: Once again, generics continued to have a negative impact on revenues, which declined 12% in the reported quarter.
LLY, which had already provided guidance for 2015 earlier this year, maintained its earnings guidance but revised other parts of the guidance mainly to reflect currency movement.
The company still expects earnings in the range of $3.10 to $3.20 per share. The Zacks Consensus Estimate currently stands at $3.12 per share. Revenues are now expected in the range of $19.5 billion – $20.0 billion. Earlier this year, the company had guided towards revenues of $20.3 billion – $20.8 billion.
Check back later for our full write up on this LLY earnings report later!
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