Eli Lilly: shares fall despite profit beat
(CercleFinance.com) - Eli Lilly and Company posted better-than-expected quarterly profit on Wednesday and raised its full-year profit guidance, driven by strong demand for new drugs, but its shares fell as the US drugmaker did not change its sales outlook.
The Indianapolis, Indiana-based company said it expects full-year 2019 EPS to be between 8.59 dollars and 8.69 dollars, up from its previous forecast range of 8.58 dollars to 8.68 dollars, due to lower tax rate.
However, Lilly left its forecasts for margins and revenue unchanged.
The drugmaker posted quarterly EPS of 1.37 dollar as reported, compared with the 1.35 dollar that Wall Street analysts were expecting.
Quarterly revenue rose by 3% to 5.5 billion dollars, versus Wall Street's estimates of 5.5 billion dollars.
"Lilly continued to deliver strong results in the third quarter, due in large part to the growth of our newer medicines and our ability to effectively manage costs," said CEO David Ricks, noting that revenue growth is being driven by volumes and not prices.
Despite these better-than-expected results, its shares were having a rough time - down 5.2% at 104.1 dollars - in early morning trading.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The Indianapolis, Indiana-based company said it expects full-year 2019 EPS to be between 8.59 dollars and 8.69 dollars, up from its previous forecast range of 8.58 dollars to 8.68 dollars, due to lower tax rate.
However, Lilly left its forecasts for margins and revenue unchanged.
The drugmaker posted quarterly EPS of 1.37 dollar as reported, compared with the 1.35 dollar that Wall Street analysts were expecting.
Quarterly revenue rose by 3% to 5.5 billion dollars, versus Wall Street's estimates of 5.5 billion dollars.
"Lilly continued to deliver strong results in the third quarter, due in large part to the growth of our newer medicines and our ability to effectively manage costs," said CEO David Ricks, noting that revenue growth is being driven by volumes and not prices.
Despite these better-than-expected results, its shares were having a rough time - down 5.2% at 104.1 dollars - in early morning trading.
Copyright (c) 2019 CercleFinance.com. All rights reserved.