Lilly Stock Slips On Mixed Bag Q2 Earnings, Cuts FY21 Sales Outlook For COVID-19 Therapies

Eli Lilly And Co LLY posted Q2 sales of $6.74 billion, beating the consensus of $6.65 billion and an increase of 23% Y/Y,
Higher sales were driven by a 22% increase in volume and a 3% to favorable foreign exchange rate impact, partially offset lower realized prices.
Key growth products consisted of Trulicity, Taltz, Verzenio, Jardiance, Emgality, Olumiant, Tyvyt, Retevmo, and Cyramza.
The Company recognized worldwide revenue of $148.9 million for its COVID-19 antibodies. On an adjusted basis, worldwide revenue in the second quarter of 2021 grew by 12%.
The gross margin was 79.3%, a decrease of 0.3 percentage points, primarily driven by sales of COVID-19 antibodies and the unfavorable effect of foreign exchange rates on international inventories sold, partially offset by favorable product mix.
Adjusted EPS increased from $1.45 to $1.87, missing the consensus of $1.92.
FY21 guidance: Eli Lilly anticipates revenue of $26.8 billion - $27.4 billion, reflecting an increase of $200 million in the Company's core business.
It also forecasts a reduction in estimated revenue from COVID-19 therapies of $1.0 billion to $1.1 billion, compared to the prior estimate of $1 billion to $1.5 billion.
The gross margin is expected to be approximately 75% on a reported basis but unchanged at 79% on an adjusted basis.
The reduction in reported guidance reflects the impact of the excess inventory charges related to COVID-19 antibodies.
Price Action: LLY shares are down 1.3% at $243.5 during the premarket session on the last check Tuesday.
Image by Arek Socha from Pixabay

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