Eli Lilly Q4 Results Top Estimates

(RTTNews) - Drugmaker Eli Lilly and Co. (LLY) reported Tuesday a profit for the fourth quarter that grew 13 percent from last year, reflecting strong Mounjaro sales and higher realized prices. Both adjusted earnings per share and revenues topped analysts' expectations. The company also provided strong revenue guidance for the full-year 2024.

In pre-market activity on the NYSE, LLY shares are trading at $740.00, up $33.80 or 4.79 percent.

For the fourth quarter, Eli Lilly reported net income of $2.19 billion or $2.42 per share, higher than $1.94 billion or $2.14 per share in the year-ago quarter.

Excluding items, adjusted earnings for the quarter were $2.49 per share, compared to $2.09 per share in the prior-year quarter.

On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $2.19 per share for the quarter. Analysts' estimates typically exclude special items.

World-wide revenue for the quarter grew 28 percent to $9.35 billion from $7.30 billion in the same quarter last year. Wall Street expected revenues of $8.93 billion for the quarter.

The revenue growth was based on volume-driven growth from Mounjaro, Verzenio, Zepbound, Jardiance and Taltz, partially offset by declines in Alimta and Trulicity.

The increase in revenue reflects volume growth of 11 percent, 16 percent higher realized prices and 1 percent favorable impact of foreign exchange rates.

New products contributed $2.19 billion to revenue, led by Mounjaro and Zepbound. Growth Products revenue increased 9 percent to $5.27 billion, led by Verzenio and Jardiance.

Worldwide Trulicity revenue declined 14 percent to $1.67 billion from last year, while Verzenio revenue surged 42 percent to $1.15 billion from last year and Mounjaro revenue was $2.21 billion. Jardiance revenues grew 30 percent to $798.1 million and Taltz revenue increased 11 percent to $784.6 million from last year.

Revenue in the U.S. increased 39 percent to $6.46 billion, and revenue outside the U.S. also increased 10 percent to $2.90 billion from last year.

Gross margin as a percent of revenue improved 210 basis points to 80.9 percent, primarily driven by higher realized prices, partially offset by increased manufacturing expenses related to labor costs and investments in capacity expansion.

Looking ahead to fiscal 2024, Eli Lilly now projects earnings in a range of $11.80 to $12.30 per share and adjusted earnings in a range of $12.20 to $12.70 per share on revenues between $40.4 billion and $41.6 billion.

The Street is currently looking for earnings of $12.43 per share on revenues of $39.8 billion for the year.

The company said the growth in revenue compared to 2023 is expected to be largely driven by New Products, partially offset by an expected continuation of the decline in Trulicity sales.

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