Eli Lilly’s net income contracts to £920 million in the fiscal third quarter

Eli Lilly’s net income contracts to £920 million in the fiscal third quarter
Written by:
Wajeeh Khan
27th October, 17:58
  • Eli Lilly’s net income contracts to £920 million in the fiscal third quarter.
  • The pharmaceutical company posts a 5% annualised growth in revenue.
  • Eli Lilly forecasts up to £18.52 billion of revenue for the full year.

Eli Lilly & Co. (NYSE: LLY) said on Tuesday that its earnings in the fiscal third quarter came in lower than expected. Eli Lilly is one of the prominent names that is committed to developing an effective treatment for COVID-19. It started late-stage human trials for its candidate vaccine in June.

Shares of the company slid more than 6% in premarket trading on Tuesday. Including the price action, Eli Lilly & Co now has a per-share price of £102 that translates to more than 10% recovery since the year to date low of £91 per share in March due to the COVID-19 disruptions. Confused about choosing a reliable stockbroker to trade online? Here’s a comparison of the top few to make selection easier for you.

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Eli Lilly’s Q3 financial results versus analysts’ estimates

Eli Lilly reported £920 million of net income in the third quarter that translates to £1.02 per share. In comparison, its net income in the same quarter last year registered at a higher £960 million or £1.05 per share.

On an adjusted basis, the pharmaceutical company earned £1.18 per share versus £1.31 per share expected, as per FactSet. In the prior quarter (Q2), Eli Lilly had earned £1.45 per share on an adjusted basis, as per the report published in July.

In terms of revenue, the Indianapolis-based company posted a 5% annualised growth in Q3 to £4.39 billion. According to FactSet, analysts had anticipated a much lower £4.50 billion of revenue in the third quarter.

CEO David A. Ricks commented on the earnings report on Tuesday and said:

“Despite ongoing healthcare disruptions from the global pandemic, we remain confident in the strength of our underlying business and continue to manage our operations to deliver success over the long term.”

Eli Lilly’s guidance for the full year

For the full year, Eli Lilly now forecasts its per-share earnings to fall in the range of £4.75 to £4.90. Its estimate for annual revenue now stands at £18.14 billion to £18.52 billion. In comparison, experts forecast the company to record £18.29 billion of yearly revenue and £5.57 of full-year earnings per share.

Eli Lilly performed fairly upbeat in the stock market last year with an annual gain of more than 15%. At the time of writing, the American pharmaceutical company is valued at £98 billion and has a price to earnings ratio of 21.78.

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