Eli Lilly Earnings Preview: New Drugs And New LOEs


Judging by the stock’s performance in 2018, investors seem to be happy with Eli Lilly (NYSE:LLY) CEO David Ricks’ progress on restructuring and delivering growth. Shares are up just over 26% year to date, beating the S&P 500’s (SPX) 1% increase and the S&P Healthcare Select Sector’s (IXV) 6.7% climb.

The next update for investors and analysts is LLY’s third-quarter earnings, scheduled for before market open on Tuesday, Nov. 6.

For Q3, LLY is expected to report adjusted EPS of $1.35 on revenue of $6.1 billion, according to third-party consensus analyst estimates. In the same quarter last year, the company reported adjusted EPS of $1.05 on revenue of $5.66 billion. LLY has met or beat earnings estimates in the past six quarters, with the company beating by the widest margins in its two latest reports.

Analysts and investors are again likely to be looking for ongoing progress in CEO Ricks’ progress on increasing manufacturing efficiencies and cutting costs. In Q2, operating expenses decreased 1% to $2.99 billion.

Within those costs, the company said it had cut marketing, selling and administrative expenses by 4%, while research and development expenses were up 5%, so management is clearly shifting focus to developing new drugs.

Read more at : https://www.investing.com/analysis/eli-lilly-earnings-preview-new-drugs-and-new-loes-200355206