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 Trajenta, Strattera, Forteo 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.
Lilly is also working on controlling costs.
LLY’s earnings track record has been pretty good with the company delivering positive earnings in the last four quarters with an average surprise of 9.36%. Estimate revisions for 2015 are, however, negative with analysts lowering their estimates.
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:
Earnings Beat: LLY beat on third quarter earnings by a wide margin. The company reported EPS of 89 cents while our consensus called for EPS of 76 cents.
Slight Revenue Miss: Revenues were just shy of expectations. Lilly posted revenues of $4.959 billion, compared to our consensus estimate of $4.962 billion.
Ups Earnings Outlook: LLY now expects earnings in the range of $3.40 to $3.45 per share (guidance provided with second quarter results: $3.20 – $3.30 per share) on revenues of $19.7 billion – $20.0 billion (unchanged). The Zacks Consensus Estimate currently stands at $3.27 per share, well below the new guidance range.
Check back later for our full write up on this LLY earnings report later!
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