The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Eli Lilly beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly, and GAAP earnings per share improved.
Margins contracted across the board.
Eli Lilly reported revenue of $6.05 billion. The 15 analysts polled by S&P Capital IQ foresaw revenue of $5.90 billion. Sales were 2.3% lower than the prior-year quarter's $6.19 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.87. The 18 earnings estimates compiled by S&P Capital IQ averaged $0.81 per share on the same basis. GAAP EPS of $0.87 for Q4 were 27% lower than the prior-year quarter's $1.05 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 78.1%, 200 basis points worse than the prior-year quarter. Operating margin was 20.4%, 430 basis points worse than the prior-year quarter. Net margin was 14.2%, 470 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $5.30 billion. On the bottom line, the average EPS estimate is $0.78.
Next year's average estimate for revenue is $22.35 billion. The average EPS estimate is $3.19.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Eli Lilly is hold, with an average price target of $37.37.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.