Eli Lilly Dips Despite Solid Q3 Results

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Eli Lilly and Co. (NYSE: LLY) released its third-quarter financial results before the markets opened on Tuesday. The pharma giant said that it had $1.39 in earnings per share (EPS) and $6.06 billion in revenue, compared with consensus estimates that called for $1.35 in EPS and revenue of $6.05 billion. The same period of last year reportedly had EPS of $1.05 on $5.66 billion in revenue.

During the latest quarter, Eli Lilly spun off Elanco Animal Health, which became a publicly traded company via an initial public offering (IPO). As of the closing of the IPO, Eli Lilly owns approximately 80.2% of Elanco, and it is actively working to divest its remaining position through a tax-efficient transaction within one year of the IPO.

The company reported some of its best-selling drugs as follows:

  • Humalog revenue decreased 5% year over year to $664.6 million.
  • Alimta revenue increased 1% to $520.5 million.
  • Cialis revenue decreased 17% to $467.1 million.
  • Forteo revenue decreased 12% to $390.8 million.
  • Trulicity revenue increased 55% to $816.2 million.
  • Taltz revenue increased 74% to $263.9 million.
  • Basaglar revenue increased 38% to $201.2 million.

Looking ahead to the 2018 full year, the company expects to see EPS in the range of $5.55 to $5.60 and revenue between $24.3 billion and $24.5 billion. Consensus estimates call for $5.48 in EPS and $24.4 billion in revenue for the year.

David A. Ricks, Eli Lilly’s board chair and chief executive, commented:

Lilly delivered strong financial results in the third quarter. Revenue growth driven by greater use of our newest medicines, coupled with prudent expense management, led to strong EPS growth. Our strategy is to focus on discovering and developing breakthrough medicines that can help doctors and patients who need new treatment options for serious diseases. We are pleased with our progress this quarter, achieving key development and regulatory milestones in pain and diabetes, while driving continued adoption of our new medicines around the world. Consistent with our revised guidance, we expect to finish 2018 by further delivering strong performance.

Shares of Eli Lilly were last seen down over 2% at $107.30, with a consensus analyst price target of $111.59. The stock has a 52-week trading range of $73.69 to $116.61.