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Eli Lilly Surpasses Estimates, Reports Growth in Q2 2018

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Eli Lilly’s revenue

In Q2 2018, Eli Lilly’s (LLY) revenue rose 9% YoY (year-over-year) to ~$6.4 billion. It reported adjusted EPS of $1.50 and revenue of ~$6,355 million, beatings analysts’ estimates of $1.30 and ~$6.0 billion, respectively. The graph below shows its quarterly revenue since Q1 2017.

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Q2 2018 performance

Eli Lilly’s 9% top-line growth comprised 7% volume growth and 2% foreign exchange in Q2 2018. Its net adjusted income rose 33% YoY to ~$2.9 billion. US sales, which contributed ~50.7% of Eli Lilly’s total revenue during the quarter, grew 11% YoY to ~$3.2 billion, driven by strong Trulicity, Basaglar, Taltz, and Verzenio sales and higher US collaboration revenue, and offset by lower Effient and Strattera sales. International sales grew 10% YoY to ~$2.8 billion, driven by Taltz, Olumiant, and Trulicity volume growth and foreign exchange.

2018 guidance

Eli Lilly has updated its guidance for 2018 and now expects to see revenue of $24.0 billion–$24.5 billion, driven by its portfolio and higher collaboration revenue. It expects its non-GAAP gross profit margin to expand to ~76% due to foreign exchange, and to see non-GAAP EPS of $5.40–$5.50. The Health Care Select Sector SPDR ETF (XLV) invests 2.5% of its holdings in Eli Lilly, 3.8% in Amgen (AMGN), 6.5% in Pfizer (PFE), and 4.0% in AbbVie (ABBV).

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