Eli Lilly’s Revenue Trend in 3Q17



Eli Lilly’s revenues

Eli Lilly and Company (LLY) reported revenues of $5.7 billion in 3Q17, a 9% growth compared to 3Q16. It surpassed Wall Street analysts’ estimates for EPS (earnings per share) and revenues in 3Q17. EPS was $1.05, and revenues were $5.7 billion compared to the estimated EPS of $1.03 on revenues of $5.5 billion.

The above graph compares Eli Lilly’s revenue trend over the last eight quarters. For 4Q17, analysts estimate revenues of $5.9 billion, a 3% growth compared to 4Q16. We’ll look at the detailed estimates for 4Q17 and 2017 later in this series.

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3Q17 performance

In 3Q17, Eli Lilly’s top line increased 9% to $5.7 billion. Growth was driven by the strong performances of its human pharmaceuticals and animal health products portfolios. Its net income rose 19% to $1.1 billion in 3Q17 compared to 3Q16.

US markets contributed 55% of Eli Lilly’s total revenues in 3Q17. US sales rose 9% to $3.1 billion in 3Q17 compared to 3Q16. Growth in US sales was driven by strong sales of Basaglar, Lartruvo, Jardiance, Taltz, and a few other pharmaceutical products. It was also driven by companion animal products and the inclusion of revenues from its acquired vaccines portfolio from Boehringer Ingelheim.

Its international markets reported an 8% growth in sales to ~$2.6 billion in 3Q17 compared to 3Q16. Growth was driven by strong sales of Forteo and Humalog.

We’ll look at each segment’s performance for 3Q17 later in this series.

The PowerShares Dynamic Pharmaceuticals ETF (PJP) holds 4.9% of its total investments in Eli Lilly (LLY), 5% in AbbVie (ABBV), 4.8% in Gilead Sciences (GILD), and 4.8% in Bristol-Myers Squibb (BMY).


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