UPDATE: Eli Lilly Posts Upbeat Q4 Profit, Sales Decline

Eli Lilly and Company (NYSE: LLY) reported better-than-expected earnings for the fourth quarter. The Indianapolis, Indiana-based company posted quarterly earnings of $428.5 million, or $0.40 per share, compared to $727.5 million, or $0.67 per share, in the year-ago period. Its adjusted profit climbed to $797.6 million, or $0.75 per share, compared to $796.9 million, or $0.74 per share. Its sales slipped 12% to $5.12 billion. However, analysts were expecting earnings of $0.73 per share on revenue of $5.19 billion. Total revenue in the U.S. slipped 19% to $2.453 billion, while revenue outside the U.S. dropped 3% to $2.669 billion.Gross margin shrank 13% to $3.868 billion in the quarter, while total operating expenses slipped 13% to $2.986 billion."While Lilly's fourth-quarter 2014 results continue to reflect the impact of patent expirations, we are moving to a period of growth led by diabetes, oncology and animal health," said John C. Lechleiter, Ph.D., Lilly's chairman, president and chief executive officer. "Despite the loss of significant revenue for Cymbalta and Evista following the expiration of our U.S. patents, we saw strong performance from many other products.”Eli Lilly affirmed its profit forecast for 2015. However, the company lowered its FY15 revenue forecast to $19.5 to $20.0 billion, from $20.3 billion to $20.8 billion.Eli Lilly shares gained 1.61% to close at $72.11 yesterday.