Indianapolis, IN based Eli Lilly and Company (LLY) is a global healthcare company with core products in a number of primary-care pharmaceutical markets. Eli 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). Eli 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. The company 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:
Earnings Beat: LLY beat on first quarter earnings by a wide margin. Our consensus called for EPS of 76 cents and the company reported EPS of 87 cents.
Revenues Slightly Above Expectations: Revenues were also just above expectations. Eli Lilly posted revenues of $4.645 billion, compared to our consensus estimate of $4.625 billion.
Key Stats: Once again, generics had a negative impact on revenues, which declined 1% in the reported quarter. Revenues were also hit by unfavorable currency movement.
LLY continues to expect earnings in the range of $3.10 to $3.20 per share on revenues of $19.5 billion – $20.0 billion. The Zacks Consensus Estimate currently stands at $3.15 per share.
Check back later for our full write up on this LLY earnings report later!
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