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Eli Lilly Stock’s June Performance



A look at Eli Lilly

Leading US pharmaceutical company Eli Lilly (LLY) specializes in human pharmaceuticals and animal health. The chart below shows Eli Lilly’s revenue and EPS since Q1 2017, and analysts’ estimate for Q2 2018.

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Analysts’ revenue estimate

Eli Lilly’s revenue has grown over the past few quarters, driven by Cyramza, Humalog, Jardiance, Taltz, and Trulicity sales and offset by low Cymbalta and Zyprexa sales due to competition. Analysts expect Eli Lilly’s revenue to grow 3.4% year-over-year to $6.0 billion in Q2 2018, and for it to see EPS of $1.29. The company is set to release its Q2 2018 results on July 24.

On June 22, Eli Lilly completed the acquisition of ARMO BioSciences for $50 per share. The transaction is expected to affect its GAAP financial guidance and results.

Analysts’ recommendations

Eli Lilly stock rose ~1.2% in June and had risen 2.4% year-to-date as of July 3. Analysts’ 12-month target price of $91.26 implies a ~5.5% return based on the stock’s July 3 price of $86.51.

Of the 20 analysts tracking Eli Lilly, four recommend “strong buy,” seven recommend “buy,” eight recommend “hold,” and one recommends “sell.” Their consensus rating for the stock is 2.30, which represents a “buy” for value investors. The SPDR S&P Pharmaceuticals ETF (XPH) invests 4.6% of its holdings in Eli Lilly, 4.5% in Pfizer (PFE), 4.7% in Bristol-Myers Squibb (BMY), and 4.6% in Perrigo (PRGO).



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