Eli Lilly beats by $0.07, reports revs in-line; raises FY19 EPS above consensus, reaffirms FY19 revs guidance (109.84)
- Reports Q3 (Sep) earnings of $1.48 per share, excluding non-recurring items, $0.07 better than the S&P Capital IQ Consensus of $1.41; revenues rose 3.2% year/year to $5.48 bln vs the $5.5 bln S&P Capital IQ Consensus, +4% ex-FX. The increase in revenue was driven by an 8 percent increase due to volume, partially offset by a 4 percent decrease due to lower realized prices. Revenue in the U.S. was essentially flat at $3.060 billion, as increased volume of 5 percent was offset by lower realized prices.
- Co issues guidance for FY19, sees EPS of $5.75-5.85 from $5.67-5.77 due to a lower tax rate, excluding non-recurring items, vs. $5.72 S&P Capital IQ Consensus; sees FY19 revs of $22.0-22.5 bln vs. $22.23 bln S&P Capital IQ Consensus. Revenue growth is expected to be driven by volume from key growth products including Trulicity, Taltz, Basaglar, Jardiance, Verzenio, Cyramza, Olumiant, and Emgality. Revenue growth is also expected to benefit from the recent launch of Baqsimi. Revenue growth is expected to be partially offset by lower revenue for Cialis and other products that have lost patent exclusivity. Revenue growth is also expected to be partially offset by the negative impact of foreign exchange rates, a mid-single digit net price decline in the U.S. driven primarily by rebates and legislated increases to Medicare Part D cost sharing, patient affordability programs, price declines in some international markets and the impact of the product withdrawal of Lartruvo. Gross margin as a percent of revenue rate is still expected to be ~80.0 percent on a non-GAAP basis