Eli Lilly & Co Earnings on Deck

S&P 500 (NYSE:SPY) component Eli Lilly & Co (NYSE:LLY) will unveil its latest earnings on Wednesday, October 24, 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 estimate of analysts is for profit of 82 cents per share, a decline of 27.4% 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 79 cents. Between one and three months ago, the average estimate moved up. It has risen from 81 cents during the last month. Analysts are projecting profit to rise by 23.1% compared to last year’s $3.39.

Past Earnings Performance: Last quarter, the company reported net income of 83 cents per share versus a mean estimate of profit of. The company has beaten estimates for the past three quarters.

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Stock Price Performance: Between August 22, 2012 and October 18, 2012, the stock price had risen $11.64 (27.6%), from $42.17 to $53.81. 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.

A Look Back: In the second quarter, profit fell 22.9% to $923.6 million (83 cents a share) from $1.2 billion ($1.07 a share) the year earlier, but exceeded analyst expectations. Revenue fell 10.4% to $5.6 billion from $6.25 billion.

Wall St. Revenue Expectations: On average, analysts predict $5.62 billion in revenue this quarter, a decline of 8.6% from the year-ago quarter. Analysts are forecasting total revenue of $22.72 billion for the year, a decline of 6.5% from last year’s revenue of $24.29 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 2.3% in the fourth quarter of the last fiscal year and 4.1% in first quarter before falling again in the second quarter.

Heading into this earnings announcement, net income has dropped 14.7% on average for the last four quarters.

Analyst Ratings: With five analysts rating the stock as a buy, three rating it as a sell and seven rating it as a hold, there are indications of a bullish outlook.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.86 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. The company regressed in this liquidity measure from 1.92 in the first quarter to the last quarter driven in part by a decrease in current assets. Current assets decreased 2.3% to $12.31 billion while liabilities rose by 0.9% to $6.61 billion.

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

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