Health and Healthcare

What to Expect When Eli Lilly Reports Earnings

Chris Lange

Published: April 25, 2016 12:15 pm

Last Updated: January 13, 2020 10:20 am

Eli Lilly and Co. (NYSE: LLY) is set to release its first-quarter earnings report before the markets open on Tuesday. Thomson Reuters has consensus estimates of $0.85 in earnings per share (EPS) on $4.82 billion in revenue. In the same period of last year, the pharmaceutical giant posted EPS of $0.87 and $4.64 billion in revenue.

This stock checks in at high on the global pharmaceutical lists at many top Wall Street firms. Eli Lilly is a global health care company with numerous core products in a number of primary-care pharmaceutical markets. The company generates revenues from its pharmaceutical product and animal health segments.

The product portfolio includes Zyprexa (for schizophrenia and bipolar disorder), Gemzar (pancreatic cancer), Evista (osteoporosis), Cymbalta (depression), Cialis (erectile dysfunction), Strattera (attention deficit hyperactivity disorder), Erbitux (cancer) and Alimta (chemotherapy). Eli Lilly also has a strong presence in the diabetes market.

The company reported fourth-quarter earnings that were in line with consensus estimates. While the overall numbers were unremarkable in the analysts’ view, Merrill Lynch is still very focused on the company’s outstanding late-stage product pipeline, which the firm views as very undervalued. It also remains very positive on the “huge growth potential” prospects for Jardiance, which is a prescription medicine used to lower blood sugar in adults with type 2 diabetes.

Ahead of the earnings report, a few analysts weighed in on the stock:

• BMO Capital Markets has an Outperform rating with a $90 price target.
• Leerink Swann reiterated an Outperform rating.
• Deutsche Bank reiterated a Buy rating.

So far in 2016, Eli Lilly has underperformed the broad markets, with the stock down 7%. However, over the past 52 weeks the stock is up over 10%.

Shares of Eli Lilly were trading at $77.71 on Monday, with a consensus analyst price target of $94.18 and a 52-week trading range of $67.88 to $92.85.