Lilly Stock Slips On Mixed Bag Q2 Earnings, Cuts FY21 Sales Outlook For COVID-19 Therapies

  • Eli Lilly And Co (NYSE:LLYposted Q2 sales of $6.74 billion, beating the consensus of $6.65 billion and an increase of 23% Y/Y, 
  • Higher sales were driven by a 22% increase in volume and a 3% to favorable foreign exchange rate impact, partially offset lower realized prices. 
  • Key growth products consisted of Trulicity, Taltz, Verzenio, Jardiance, Emgality, Olumiant, Tyvyt, Retevmo, and Cyramza.
  • The Company recognized worldwide revenue of $148.9 million for its COVID-19 antibodies. On an adjusted basis, worldwide revenue in the second quarter of 2021 grew by 12%.
  • The gross margin was 79.3%, a decrease of 0.3 percentage points, primarily driven by sales of COVID-19 antibodies and the unfavorable effect of foreign exchange rates on international inventories sold, partially offset by favorable product mix.
  • Adjusted EPS increased from $1.45 to $1.87, missing the consensus of $1.92.
  • FY21 guidance: Eli Lilly anticipates revenue of $26.8 billion - $27.4 billion, reflecting an increase of $200 million in the Company's core business.
  • It also forecasts a reduction in estimated revenue from COVID-19 therapies of $1.0 billion to $1.1 billion, compared to the prior estimate of $1 billion to $1.5 billion.
  • The gross margin is expected to be approximately 75% on a reported basis but unchanged at 79% on an adjusted basis. 
  • The reduction in reported guidance reflects the impact of the excess inventory charges related to COVID-19 antibodies.
  • Price Action: LLY shares are down 1.3% at $243.5 during the premarket session on the last check Tuesday.
  • Image by Arek Socha from Pixabay
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