Eli Lilly Quarterly Earnings Approaches

S&P 500 (NYSE:SPY) component Eli Lilly & Co (NYSE:LLY) will unveil its latest earnings tomorrow, Wednesday, July 25, 2012. Eli Lilly develops and manufactures pharmaceutical products as well as animal health products.

Eli Lilly & Co Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 77 cents per share, a decline of 34.7% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 72 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 77 cents during the last month. For the year, analysts are projecting profit of $3.29 per share, a decline of 25.4% from last year.

Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported net income of 92 cents per share against a mean estimate of profit of 78 cents, and the quarter before, the company exceeded forecasts by 6 cents with net income of 87 cents versus a mean estimate of profit of 81 cents.

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Stock Price Performance: Between April 24, 2012 and July 23, 2012, the stock price rose $4.02 (10.1%), from $39.81 to $43.83. The stock price saw one of its best stretches over the last year between March 6, 2012 and March 15, 2012, when shares rose for eight straight days, increasing 4.2% (+$1.64) over that span. It saw one of its worst periods between May 29, 2012 and June 4, 2012 when shares fell for five straight days, dropping 2.8% (-$1.15) over that span.

Wall St. Revenue Expectations: Analysts predict a decline of 10.7% in revenue from the year-earlier quarter to $5.58 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.92 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 2.3% in the fourth quarter of the last fiscal year and dropped again in the first quarter.

A Look Back: In the first quarter, profit fell 4.2% to $1.01 billion (91 cents a share) from $1.06 billion (95 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 4.1% to $5.6 billion from $5.84 billion.

Analyst Ratings: There are mostly holds on the stock with 12 of 17 analysts surveyed giving that rating.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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