Traders Mostly Shrugging-Off Eli Lilly's (LLY) Mixed Q1 Results
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Price: $1,163.01 -1.05%
Revenue Growth %: +32.1%
Financial Fact:
Cost of sales, operating expenses, and other-net: 4.22B
Today's EPS Names:
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Revenue Growth %: +32.1%
Financial Fact:
Cost of sales, operating expenses, and other-net: 4.22B
Today's EPS Names:
HYFT, ESBS, PFBK, More
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Eli Lilly and Co. (NYSE: LLY) said Monday that charges from health care reform caused a 5 percent drop in the company’s first-quarter profit, despite strong growth in sales for some of its best-selling drugs.
The drugmaker reported first-quarter earnings of $1.25 billion, or $1.13 per share, down from $1.31 billion, or $1.20 per share, in the same quarter last year. Excluding one-time items, Lilly earned $1.18 per share, 8 cents better than the market consensus of $1.10 per share.
Revenue for the company rose 9 percent to $5.49 billion, slightly missing the analyst forecast of $5.54 billion. Sales of the Lilly’s top-selling drug, Zyprexa, grew 8 percent in the quarter to $1.2 billion, while sales of the cancer drug Alimta jumped 57 percent to $527 million.
Research and development expenses rose 10 percent in the quarter for the company mostly due to cost for late-stage trials of new drugs. Lilly currently has eight drugs in late-stage trials, with two new drugs scheduled to be launched in 2013.
"Lilly delivered strong operational performance in the first quarter, even as we experienced continued weakness in the U.S. dollar versus prior periods and began to account for the impact from recently-enacted U.S. health care reform," said John C. Lechleiter Ph.D., Lilly's chairman and CEO. "Our volume-driven revenue growth remains solid and we are making the investments necessary to accelerate the flow of potential new medicines through our pipeline."
As a result of the health care reform, the company reduced its 2010 adjusted earnings guidance to $4.40 to $4.55 per share, which compares to its previous forecast of $4.65 to $4.85 per share. Analysts are predicting earnings of $4.73 per share for the drugmaker in 2010.
Shares of Eli Lilly are down 13 cents to $36.41 in midday trading.
The drugmaker reported first-quarter earnings of $1.25 billion, or $1.13 per share, down from $1.31 billion, or $1.20 per share, in the same quarter last year. Excluding one-time items, Lilly earned $1.18 per share, 8 cents better than the market consensus of $1.10 per share.
Revenue for the company rose 9 percent to $5.49 billion, slightly missing the analyst forecast of $5.54 billion. Sales of the Lilly’s top-selling drug, Zyprexa, grew 8 percent in the quarter to $1.2 billion, while sales of the cancer drug Alimta jumped 57 percent to $527 million.
Research and development expenses rose 10 percent in the quarter for the company mostly due to cost for late-stage trials of new drugs. Lilly currently has eight drugs in late-stage trials, with two new drugs scheduled to be launched in 2013.
"Lilly delivered strong operational performance in the first quarter, even as we experienced continued weakness in the U.S. dollar versus prior periods and began to account for the impact from recently-enacted U.S. health care reform," said John C. Lechleiter Ph.D., Lilly's chairman and CEO. "Our volume-driven revenue growth remains solid and we are making the investments necessary to accelerate the flow of potential new medicines through our pipeline."
As a result of the health care reform, the company reduced its 2010 adjusted earnings guidance to $4.40 to $4.55 per share, which compares to its previous forecast of $4.65 to $4.85 per share. Analysts are predicting earnings of $4.73 per share for the drugmaker in 2010.
Shares of Eli Lilly are down 13 cents to $36.41 in midday trading.
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