Generics Take a Bite of Eli Lilly Q3 Results

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By Trey Thoelcke Published
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Eli Lilly (NYSE: LLY) this morning reported disappointing third-quarter results as generic drugs took a toll on its sales.

The Indianapolis-based drug maker posted adjusted earnings per share (EPS) of $0.79 on revenues of $5.44 billion. In the same period a year ago, the company reported EPS of $1.13 on revenues of $6.15 billion. The quarter’s results also compare to the Thomson Reuters consensus estimates for EPS of $0.83 and $5.62 billion in revenues.

The company’s chairman and CEO said:

The third quarter was an eventful one for Lilly, as we gained a better understanding of several potential new medicines in our clinical pipeline, while maintaining focus on delivering solid financial results despite the loss of Zyprexa patent exclusivity.

Also, the company recognized a charge of $53.3 million in the quarter related to asset impairments associated with the decision to stop development of a delivery device platform.

Eli Lilly now expects full-year 2012 EPS to be in the range of $3.30 to $3.40 on revenue of between $21.8 and $22.8 billion. The Thomson Reuters consensus estimates call for EPS of $3.39 and $22.72 billion in revenues.

Shares are inactive in premarket trading but closed yesterday at $51.91. The 52-week range is $35.46 to $53.99.

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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