Fly Intel: What to watch in Eli Lilly earnings report
Eli Lilly (LLY) is scheduled to report the results of its third fiscal quarter before the market open on Wednesday, October 23, with a conference call scheduled for 9:00 am EDT. What to watch for: 1. GUIDANCE: Along with its second quarter report in late July, the drug giant raised its fiscal year 2019 earnings per share guidance to $5.67-$5.77 from $5.60-$5.70, while reaffirming its FY19 revenue view of $22B-$22.5B. Current consensus estimates for Q3 EPS and revenue are $1.40 and $5.5B, respectively. For Q2, Lilly's revenue in the U.S. increased 1% driven by 6% volume growth. Key growth products launched since 2014, including Trulicity, Taltz, Jardiance, Verzenio, Olumiant, Basaglar, Emgality, and Cyramza, contributed 13 percentage points of revenue growth and represented approximately 43% of total revenue, the company noted. 2. KEY APPROVALS AND TRIALS: The U.S. Food and Drug Administration approved Cyramza as a single agent for the treatment of patients with hepatocellular carcinoma who have an alpha-fetoprotein of 400 ng/mL and have been treated with sorafenib. The FDA approved Emgality for the treatment of episodic cluster headache in adults and approved Baqsimi hypoglycemia in people with diabetes ages four years and above. The FDA granted Fast Track designation to empagliflozin for the reduction of the risk of cardiovascular death and hospitalization for heart failure in people with chronic heart failure. 3. REVENUE DRIVERS FOR 2019: The company anticipates revenue growth to be driven by volume from key growth products including Trulicity, Taltz, Basaglar, Jardiance, Verzenio, Cyramza, and Olumiant. Revenue growth is also expected to benefit from the recent launch of Emgality and could benefit from the potential approval and launch of other medicines in 2019. Revenue growth is expected to be partially offset by lower revenue for Cialis and other products that have lost patent exclusivity.