Investing

Drug Giants Show Mixed Earnings (BMY, LLY)

Surging growth of its Cymbalta depression treatment helped Eli Lilly & Co. (NYSE: LLY) beat Wall St.’s earnings expectations. But generic rivals to Plavix, other drugs hurt Bristol-Myers Squibb Co. (NYSE: BMY) second-quarter results.

Eli Lilly said it earned $924 million, or $0.83 per share, in the second quarter. That was down from $1.2 billion, or $1.07 per share in the year-earlier period. Analysts polled by Thomson Reuters expected $0.77 per share. Global sales of $5.6 billion were in line with consensus estimates.

Eli Lilly said it now expects full-year 2012 earnings of $3.30 to $3.40 per share, excluding special items. The previous forecast called for EPS of $3.15 to $3.30. The drugmaker raised its outlook due to the favorable impact of a stronger dollar.

Bristol-Myers said its net income in the quarter plunged 28% to $645 million, or $0.38 cents per share. Adjusted EPS of $0.48 was in line with analysts’ expectations. Total revenue fell year-over-year by 18% to $4.44 billion, which also more-or-less matched consensus estimates.

Bristol-Myers said it now expects 2012 earnings per share of $1.78 to $1.88, although its forecast excluding one-time items remains at $1.90 to $2.00 per share.

Eli Lilly is up about 1.2% in premarket trading to $42.50, in a 52-week range of $33.75 to $44.67. Bristol-Myers closed Tuesday at $34.73, in a 52-week range of $25.69 to $36.34. The mean price target on Bristol-Myers is less than 2% higher than that closing price. Eli Lilly’s current price is higher than the mean price target on shares.

The Average American Is Losing Their Savings Every Day (Sponsor)

If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4% today, and inflation is much higher. Checking accounts are even worse.

Every day you don’t move to a high-yield savings account that beats inflation, you lose more and more value.

But there is good news. To win qualified customers, some accounts are paying 9-10x this national average. That’s an incredible way to keep your money safe, and get paid at the same time. Our top pick for high yield savings accounts includes other one time cash bonuses, and is FDIC insured.

Click here to see how much more you could be earning on your savings today. It takes just a few minutes and your money could be working for you.

 

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.

AI Portfolio

Discover Our Top AI Stocks

Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.

You can follow him investing $500,000 of his own money on our top AI stocks for free.