Eli Lilly & Co. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Eli Lilly & Co. (NYSE:LLY) will unveil its latest earnings on Thursday, July 21, 2011. Eli Lilly & Co. develops and manufactures pharmaceutical products as well as animal health products. Investing in Healthcare: Dendreon, Eli Lilly, Roche and More>>

Eli Lilly & Co. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.18 per share, a decline of 4.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.16. Between one and three months ago, the average estimate moved up, and has risen from $1.17 during the last month. For the year, analysts are projecting net income of $4.28 per share, a decline of 9.7% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 7 cents, reporting profit of $1.24 per share against a mean estimate of net income of $1.17 per share.

Savvy Investing Tip: Our CHEAT SHEET investing framework recommends only stocks with two straight quarters of earnings growth. Learn More >>

Wall St. Revenue Expectations: On average, analysts predict $5.99 billion in revenue this quarter, a rise of 4.2% from the year ago quarter. Analysts are forecasting total revenue of $23.46 billion for the year, a rise of 1.6% from last year’s revenue of $23.08 billion.

Analyst Ratings: Analysts seem relatively indifferent about Eli Lilly & with 14 of 19 analysts surveyed maintaining a hold rating.

Key Stats:

The decrease in profit in the first quarter breaks a streak of three consecutive quarters of year-over-year profit increases. Net income fell 15.4% in the first quarter from the year earlier, while the figure rose 27.8% in the fourth quarter of the last fiscal year, 38.3% in the third quarter of the last fiscal year and 16.4% in the second quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 6.4% to $5.84 billion in first quarter. The figure rose 4.3% in the fourth quarter of the last fiscal year from the year earlier, climbed 1.7% in the third quarter of the last fiscal year from the year-ago quarter and 8.6% in the second quarter of the last fiscal year.

Competitors to Watch: Pfizer Inc. (NYSE:PFE), Bristol Myers Squibb Co. (NYSE:BMY), Merck & Co., Inc. (NYSE:MRK), Johnson & Johnson (NYSE:JNJ), Amylin Pharmaceuticals, Inc. (NASDAQ:AMLN), GlaxoSmithKline plc (NYSE:GSK), Alkermes, Inc. (NASDAQ:ALKS), Novartis AG (NYSE:NVS), and Abbott Laboratories (NYSE:ABT).

Stock Price Performance: During April 19, 2011 to July 18, 2011, the stock price had risen $2.80 (8%) from $35.25 to $38.05. The stock price saw one of its best stretches over the last year between April 29, 2011 and May 16, 2011 when shares rose for 12-straight days, rising 7.1% (+$2.61) over that span. It saw one of its worst periods between November 9, 2010 and November 17, 2010 when shares fell for seven-straight days, falling 2.5% (-85 cents) over that span. Shares are up $3.01 (+8.59%) year to date.

(Source: Xignite Financials)

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