Eli Lilly (NYSE:LLY) Reports EPS and Revenues In-Line, Reaffirms FY16 Guidance

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Eli Lilly and Co (NYSE:LLY)

Eli Lilly and Co (NYSE:LLY) reported 12% growth in net earnings for the fourth quarter driven by a 5% increase in top line apart from tax gains. The company’s adjusted earnings, as well as revenue came in line with the Capital IQ consensus expectations for the quarter. The drug maker also reaffirmed its guidance for the fiscal year 2016.

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Volume and Price Hike

Eli Lilly and Co (NYSE:LLY)’s net income grew 12% to $478.4 million from $428.5 million while earnings advanced 13% to 45 cents a share from 40 cents a share last year. Excluding adjustments, net income dipped 6% to $828.2 million while earnings per share fell 5% to 78 cents. Adjusted EPS was in line with Capital IQ expectations.

The company’s top line advanced 5% to $5.38 billion from $5.12 billion while non-GAAP revenue remained flat at $5.38 billion. Capital IQ estimated the drug maker to deliver revenue of $5.33 billion. The growth in revenue was attributed to a 7% increase in volume while 3% came due to price hikes. However, unfavorable impact from foreign exchange rates negated benefits by 6%.

America’s Contribution

Eli Lilly also gained from its North American market where it witnessed a 15% increase in revenue to $2.82 billion fueled by price hikes and higher volume. Volume increases for Erbitux, Cyramza, and Trulicity all contributed.

However, revenue from rest of the world saw a 4% drop to $2.56 billion as foreign exchange rates hurt results. Aside from that, it lost exclusivity for Cymbalta in 2014 in Europe though it was partly compensated by the addition of Novartis Animal Health revenue besides higher volumes from other products.

Re-Affirms Outlook

For the current year, Eli Lilly reaffirmed its adjusted earnings outlook of $3.45 – $3.55 a share for the year 2016 while Capital IQ consensus estimated called for $3.55 a share. Similarly, the company expects revenue of $20.2 – $20.7 billion, which was lower than the prediction of Capital IQ’s $20.91 billion. The drug maker indicated that it sees revenue growth, excluding currency impact, from several established products like Forteo, Humalog, Strattera, and animal health products.

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