A look at Eli Lilly and Company
Eli Lilly and Company (LLY), also referred to as “Lilly,” reported an increase in its top line by ~4.7% in its 1Q16 earnings on April 26, 2016. Investors can refer to a detailed company overview at Eli Lilly and Company: A Leader in the Pharmaceutical Industry.
Eli Lilly met Wall Street analysts’ 1Q16 estimates for revenues but missed the estimates for earnings per share (or EPS) of $0.85 with actual EPS of $0.83. The stock price fell by ~2.1% to close at $76.27 on April 26, 2016, as compared to the day before.
Stock price performance
Eli Lilly’s stock value has increased by ~9.4% over the last 12 months as of April 27, 2016. During the same period, the iShares Core S&P 500 ETF (IVV), which holds ~0.5% of its total assets in Eli Lilly, improved by 0.6% while GlaxoSmithKline (GSK) fell by ~0.7%, Merck (MRK) fell by ~2.9%, and Pfizer (PFE) fell by ~1.0%. Investors can refer to the earnings of other companies on our pharmaceutical earnings overview page.
Eli Lilly’s top line rose by 4.7% to ~$4.9 billion for 1Q16, driven by an operational increase of 8% and the negative currency impact of 3%. The increase in revenues was mainly due to the inclusion of revenue from Novartis’s (NVS) animal health business as well as increased volumes of several products including Erbitux, Cyramza, and Trulicity.
Geographically, the US markets contributed nearly 52.5% of total revenues at $2.6 billion for 1Q16, a 15.6% increase in revenues as compared to 1Q15, due to higher prices and increased sales of pharmaceutical products, and the inclusion of Novartis’s animal health segment. The contribution from international markets was nearly 47.5% of total revenues at $2.3 billion for 1Q16, a 5% decrease in revenues as compared to 1Q15, following the negative impact of foreign exchange and lower Cymbalta sales due to loss of exclusivity in Europe in 2014.
To diversify the risk, investors can consider the iShares US Pharmaceuticals ETF (IHE), which holds 5.8% of its assets in Eli Lilly.