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Eli Lilly CEO Explains The Reasons Behind The $0.16 EPS Beat

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Eli Lilly CEO Explains The Reasons Behind The $0.16 EPS Beat

Eli Lilly and Co (NYSE: LLY) came out with remarkable second-quarter numbers on Thursday. The company reported adjusted EPS of $0.90, beating consensus analysts' estimates of adjusted EPS of $0.74 by $0.16.

John Lechleiter, Eli Lilly CEO, was on CNBC recently to weigh in on the numbers and discuss the reasons behind this beat.

Growth Returning

"We said in January when we gave investors our longer-term outlook that we expect now to return to growth after weathering a series of patent expirations that began back in 2011," Lechleiter began. "So, we are very pleased today. Reported growth [at] 1 percent; non-GAAP growth was a negative 4 percent, but we were hit by 8 percentage points of downdraft from rate, from the strengthening dollar."

Related Link: Has Eli Lilly Found A Cure For Alzheimer's?

He continued, "So, we did see good top-line growth and we are starting to get revenue now from those three products that we have launched in the last year. We have got two more under FDA review. So, it was a good quarter for Lilly."

Reason For EPS Beat

Lechleiter was asked how company managed to beat analysts' adjusted EPS consensus of $0.74 by $0.16. He replied, "Well, I think, when you look at their model, we don't guide for the quarter, but when you look at what the analysts assumptions were and you look at where we came out, it was really a lot of little things adding up."

"A little higher on the revenue line. We did better on gross margin. We controlled operating expenses a little bit better than what the analysts had in their model. Our tax rate was a little better. So, it all kind of added up to get to that $0.16 beat," Lechleiter explained.

Image Credit: Public Domain

Posted-In: CNBC John Lechleiter VetrBiotech Health Care Top Stories Media Best of Benzinga

 

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