Eli Lilly Shares collapse on Good Report and Bad Prospects
2023.02.02 14:33
Eli Lilly Shares collapse on Good Report and Bad Prospects
By Ray Johnson
Budrigannews.com – Eli Lilly & Company (NYSE:) shares despite the company’s better-than-expected report and increase in full-year EPS forecast, are down 6% on Thursday.
With sales from Alimta falling 46% to $236.6 million, Eli Lilly’s Q4 EPS of $2.09 on $7.3 billion in revenue beat the consensus estimate of $1.80 on $7.35 billion in revenue.
However, the company’s Mounjaro drug and older diabetes treatment sales fell short of consensus expectations. The company’s newest diabetes medication, Mounjaro, was anticipated to perform well and lessen the impact of insulin price cuts on sales.
According to Lilly, Mounjaro sales totaled $279.2 million, a 11% increase in U.S. revenue without COVID-19 antibody revenue. The pharmaceutical company raised its FY EPS forecast to the range of $8.35-8.55 from the previous $8.10-8.30, beating the consensus of $8.28. The company reaffirmed its prior full-year revenue forecast of $30.3-30.8B. The assumption of a lower tax rate is the cause of the increase.
Lilly’s executive vice president and chief financial officer, Anat Ashkenazi, stated: As we came to a close in 2022, Lilly demonstrated robust growth and made significant pipeline progress, including the introduction of Mounjaro for type 2 diabetes.
“We remain committed to investing in innovation, late-stage opportunities, manufacturing capacity, and our people. We expect to capitalize on this momentum and deliver mid-teen revenue growth for our core business in 2023.”
Credit Suisse analysts reported that Eli Lilly’s Verzenio drug performed 22% better than anticipated following the release. Mounjaro and Trulicity sales, on the other hand, fell 12% and 9% below consensus expectations due to the diabetes focus. In addition, Trulicity experienced intermittent delays in order fulfillment during the fourth quarter, according to the analysts, who have assigned the company an Outperform rating and set a price target of $400 per share for LLY.
“LLY posted a 4Q beat on EPS driven by taxes, while Mounjaro came in above MS, but a touch below consensus,” analysts stated at Morgan Stanley.
“LLY maintained its 2023 revision guidance but increased the range of EPS due to a lower tax rate. The analysts, who have given the stock an Overweight rating and a $440 price target, added, “We see shares likely unchanged.”
