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Eli Lilly Shares Drop After Missing Q1 Earnings On Lower COVID-19 Drug Demand; 2021 Guidance Lagging Consensus

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Eli Lilly Shares Drop After Missing Q1 Earnings On Lower COVID-19 Drug Demand; 2021 Guidance Lagging Consensus
  • Eli Lilly And Co (NYSE: LLY) posted weaker-than-expected first-quarter earnings and cut its forecast for full-year adjusted profit due to lower demand for its COVID-19 drugs.
  • The company posted net income of $1.35 billion, or $1.49 a share, in the quarter, down 7% from $1.457 billion, or $1.60 a share, a year ago. Adjusted earnings per share of $1.87 missed the consensus of $2.14. Revenue rose 16% to $6.8 billion, below the estimate of $7 billion.
  • It recognized revenue of $810.1 million in the first quarter of 2021 for its COVID-19 antibodies.
  • The company also recognized asset impairment, restructuring, and other special charges of $211.6 million, stemming from the sale of the rights to Qbrexza and integration costs relating to the acquisition of Prevail Therapeutics Inc.
  • Lilly updated its full-year guidance and expects the adjusted EPS to range from $7.80 to $8.00, down from its prior forecast of $7.75 to $8.40 per share, and well below the consensus estimate of $8.32.
  • The company sees 2021 revenue in the range of $26.6 billion to $27.6 billion, including an estimated $1 billion to $1.5 billion of revenue from COVID-19 therapies.
  • The U.S. government has stopped distributing Lilly's COVID-19 antibody-drug, bamlanivimab, as a standalone treatment therapy last month in response to new variants in the country that could be resistant to bamlanivimab when used alone.
  • Lilly said it would focus on combining bamlanivimab and its other COVID-19 antibody-drug etesevimab, which has been shown to neutralize more COVID-19 variants than bamlanivimab alone.
  • Price Action: LLY shares are trading 3.08% lower at $181.45 in the premarket session on the last check Tuesday.
 

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