Eli Lilly Posts Upbeat Q3 Earnings, Raises Forecast

Eli Lilly and Co LLY reported better-than-expected earnings for the third quarter and raised its earnings forecast for the year. The Indianapolis, Indiana-based company posted a quarterly net profit of $799.7 million, or $0.75 per share, compared to $500.6 million, or $0.47 per share, in the year-ago period. Excluding items, the company's earnings surged 22 percent to $0.89 per share. Its revenue surged 2 percent year-over-year to $4.96 billion from $4.88 billion. However, analysts were expecting earnings of $0.75 per share on revenue of $4.99 billion. The average estimate among 33 Estimize users was for earnings of $0.79 per share and revenue of $4.98 billion. Gross margin rose 3 percent to $3.723 billion in the quarter. Operating expenses slipped 7 percent year-over-year to $2.719 billion, while research and development expenses shrank 8 percent to $1.143 billion. "We are pleased with our strong third-quarter results, which reflect the ongoing actions we are taking to grow revenue and increase productivity while we are replenishing and advancing our pipeline with an array of new, innovative therapies," said John C. Lechleiter, Ph.D., Lilly's chairman, president and chief executive officer. "Despite headwinds from foreign exchange rates, we are benefiting from recent launches as well as our acquisition of Novartis Animal Health earlier this year." The company now expects FY adjusted earnings of $3.40 to $3.45 per share, versus prior forecast of $3.20 to $3.30 per share. It still expects revenue of $19.7 billion to $20 billion. Eli Lilly shares fell 1.02 percent to close at $77.00 yesterday.