Eli Lilly & Co. Earnings: Here’s Why Investors are Happy Now

Eli Lilly & Co. (NYSE:LLY) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.14%.

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Eli Lilly & Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 23.91% to $1.14 in the quarter versus EPS of $0.92 in the year-earlier quarter.

Revenue: Decreased 0% to $5.6 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Eli Lilly & Co. reported adjusted EPS income of $1.14 per share. By that measure, the company beat the mean analyst estimate of $1.05. It missed the average revenue estimate of $5.66 billion.

Quoting Management: “Lilly delivered solid financial results in the first quarter of 2013 despite numerous headwinds, as growth in several key products and regions offset the post-patent decline in Zyprexa, a weaker Japanese yen and a slowdown in parts of our animal health business,” said John C. Lechleiter, Ph.D., Lilly’s chairman, president and chief executive officer. “We also continued to maintain strict expense controls this quarter. Most importantly, we have remained focused on advancing our late-stage pipeline, and are pleased to announce that we have received Fast Track designation from the FDA and have initiated a rolling submission for ramucirumab. Together with the recent submission of empagliflozin, these are the first two of what could be up to five U.S. regulatory submissions this year.”

Key Stats (on next page)…

Revenue decreased 5.97% from $5.96 billion in the previous quarter. EPS increased 34.12% from $0.85 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.99 and has not changed. For the current year, the average estimate has moved up from a profit of $3.83 to a profit of $3.9 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)