Eli Lilly reports EPS in-line, misses on revs; reaffirms FY14 EPS guidance, raises FY14 revs following Lohmann acquisition
Reports Q1 (Mar) earnings of $0.70 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.70; revenues fell 16.4% year/year to $4.68 bln vs the $4.79 bln consensus.
Co issues guidance for FY14, reaffirms EPS of $2.72-2.80, excluding non-recurring items, vs. $2.81 Capital IQ Consensus Estimate; raises FY14 revs to $19.4-20.0 bln from $19.2-19.8 bln vs. $19.77 bln Capital IQ Consensus.
Co issues guidance for FY14, reaffirms EPS of $2.72-2.80, excluding non-recurring items, vs. $2.81 Capital IQ Consensus Estimate; raises FY14 revs to $19.4-20.0 bln from $19.2-19.8 bln vs. $19.77 bln Capital IQ Consensus.
- As described in the co's initial guidance, patent expirations are expected to drive a rapid and severe decline in U.S. Cymbalta and U.S. Evista sales. These revenue declines are expected to be partially offset by growth from a portfolio of other products including Humalog, Trajenta, Cialis, Forteo and Alimta, as well as the animal health business. In addition, strong revenue growth is expected in China, while a weaker Japanese yen will dampen revenue growth in Japan. The co now anticipates that gross margin as a percent of revenue will be ~73 percent in 2014.
- "Lilly's first-quarter results reflect the substantial decline in revenue and earnings that we expected to encounter as a result of the recent U.S. patent expirations for Cymbalta and Evista," said John C. Lechleiter, Ph.D., Lilly's chairman, president and chief executive officer. "Beyond our financial performance, the initial months of 2014 have included a series of key regulatory actions, pipeline announcements and business development transactions that solidify the company's future growth prospects, highlighted by the approval of Cyramza in the U.S. and the announced acquisition of Novartis Animal Health."