The 10-second takeaway
For the quarter ended June 30 (Q2), Eli Lilly met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share shrank significantly.
Margins shrank across the board.
Eli Lilly booked revenue of $5.60 billion. The 16 analysts polled by S&P Capital IQ hoped for sales of $5.58 billion on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $6.25 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.83. The 19 earnings estimates compiled by S&P Capital IQ averaged $0.77 per share. GAAP EPS of $0.83 for Q2 were 22% lower than the prior-year quarter's $1.07 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 79.5%, 90 basis points worse than the prior-year quarter. Operating margin was 21.5%, 600 basis points worse than the prior-year quarter. Net margin was 16.5%, 260 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $5.63 billion. On the bottom line, the average EPS estimate is $0.79.
Next year's average estimate for revenue is $22.68 billion. The average EPS estimate is $3.27.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,274 members out of 1,370 rating the stock outperform, and 96 members rating it underperform. Among 408 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 387 give Eli Lilly a green thumbs-up, and 21 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Eli Lilly is hold, with an average price target of $39.03.
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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.