Post Earnings Coverage as Eli Lilly's Q4 Revenue Beat Market Estimates

Upcoming AWS Coverage on Aerie Pharmaceuticals

NEW YORK, NY / ACCESSWIRE / February 10, 2017 / Active Wall St. announces its post-earnings coverage on Eli Lilly and Co. (NYSE: LLY). The Company reported its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year fiscal 2016 (FY16) on January 31, 2017. The Indianapolis-based Company reported a 7% y-o-y growth in its quarterly revenue, hence outperforming Wall Street's forecasts. Register with us now for your free membership at:

One of Eli Lilly's competitors within the Drug Manufacturers - Major space, Aerie Pharmaceuticals, Inc. (NASDAQ: AERI), is estimated to report earnings on March 07, 2017. AWS will be initiating a research report on Aerie Pharma following the release of its next earnings results.

Today, AWS is promoting its earnings coverage on LLY; touching on AERI. Get our free coverage by signing up to:

Earnings Reviewed

During the quarter ended on December 31, 2016, Eli Lilly reported revenue of $5.76 billion compared to $5.38 billion recorded at the end of Q4 FY15. Revenue for Q4 FY16 beat market consensus estimates of $5.55 billion. The quarterly revenue growth was primarily driven by volume growth from Trulicity and other new pharmaceutical products, while operating expenses remained flat.

The pharmaceutical Company's net income surged to $771.8 million, or $0.73 per diluted share, in Q4 FY16 from $478.4 million, or $0.45 per diluted share, in Q4 FY15. The Company's non-GAAP net income grew 22% during Q4 FY16 to $1.01 billion, or $0.95 per diluted share, from $828.2 million, or $0.78 per diluted share, in Q4 FY15. Moreover, Wall Street had expected the Company to report on-GAAP net income of $0.99 per diluted share.

In FY16, Eli Lilly's revenue came in at $21.22 billion compared to $19.96 billion in the previous year's same period. The Company reported net income of $2.74 billion, or $2.58 per diluted share in FY16, versus $2.41 billion, or $2.26 per diluted share, in FY15. Additionally, adjusted net income for FY16 stood at $3.74 billion, or $3.52 per diluted share, compared to $3.66 billion, or $3.43 per diluted share, in FY15.

Operational Metrics

The Company's GAAP gross margin rose 8% y-o-y in Q4 FY16 to $4.30 billion. GAAP gross margin as a percentage of revenue stood at 74.6% in Q4 FY16, rinsing 0.4% from the year ago corresponding quarter. The increase in gross margin percent was primarily due to increased volume in the US and efficiencies in manufacturing processes.

During Q4 FY16, Eli Lilly's research and development expenses was relatively flat at $1.45 billion versus $1.44 billion in the prior year's comparable quarter. The Company's operating income for Q4 FY16 came in at $876.2 million compared to $399.9 million in Q4 FY15. The Company attributed growth in operating income to higher revenue and lower acquired in-process research and development charges during the quarter.


On January 18, 2017, Eli Lilly announced an agreement with CoLucid Pharmaceuticals Inc. (NASDAQ: CLCD) to acquire the latter for $46.50 per share, or approximately $960 million. The all-cash transaction deal is expected to enhance Lilly's existing portfolio in pain management for migraine, while adding a potential near-term launch to its late-stage pipeline.

Dividend and Share Repurchase

In a separate press release on December 12, 2016, Eli Lilly's Board of Directors raised the quarterly dividend by 2% to $0.52 per share on outstanding common stock. The dividend is payable on March 10, 2017, to shareholders of record as of the close of business on February 15, 2017.

During Q4 FY16, Eli Lilly spent $300 million to repurchase its stock. Furthermore, the Company has returned $2.8 billion in cash to shareholders through both its dividend and share repurchase program in full year FY16.


In its guidance for FY17, Eli Lilly's management expects revenue to be in the range of $21.8 billion to $22.3 billion with GAAP gross margin of approximately 73.5%. The Company anticipates Research & Development expenses for the upcoming year to be in the range of $4.9 billion to $5.1 billion. The Company, however, revised its GAAP EPS guidance range to $2.69 per share to $2.79 per share from the previously provided guidance range of $3.51 per share to $3.61 per share. Furthermore, non-GAAP EPS outlook range has been kept unchanged at $4.05 per share to $4.15 per share.

Stock Performance

At the closing bell, on Thursday, February 09, 2017, Eli Lilly's stock slightly slipped 0.52%, ending the trading session at $77.70. A total volume of 2.95 million shares were traded at the end of the day. In the last month and previous three months, shares of the Company have advanced 1.87% and 5.66%, respectively. Moreover, the stock gained 5.64% since the start of the year. The Company's shares are trading at a PE ratio of 30.12 and have a dividend yield of 2.68%.

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SOURCE: Active Wall Street

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