Eli Lilly’s net profit for the third quarter shrank to £920 million.
The pharmaceutical company reports annualized sales growth of 5%.
Eli Lilly forecasts revenues of up to £18.52 billion for the full year.
Eli Lilly & Co. (NYSE: LLY) said on Tuesday that third quarter earnings for the fiscal year were lower than expected. Eli Lilly is one of the prominent names working to develop an effective treatment for COVID-19. She started late human trials for her vaccine candidate in June.
The company’s shares fell by more than 6% in pre-trade trading on Tuesday. Including the price action, Eli Lilly & Co now has a price of £102 per share, a recovery of more than 10% from the previous year’s low of £91 per share in March due to the disruption of COVID-19. Confused about choosing a reliable stockbroker for online trading? Here is a comparison of the few top brokers to help you make your choice.
Eli Lilly’s financial results for the 3rd quarter compared to analysts’ estimates
Eli Lilly reported a net profit of £920 million for the third quarter, or £1.02 per share. This compares to higher net profit of £960 million or £1.05 per share in the same quarter last year.
On an adjusted basis, the pharmaceutical company earned £1.18 per share, while the FactSet expected £1.31 per share. In the previous quarter (Q2), Eli Lilly had earned £1.45 per share on an adjusted basis according to the report published in July.
In terms of revenues, the Indianapolis-based company recorded annualized growth of 5% to £4.39 billion in Q3. According to FactSet, analysts had expected significantly lower revenues of £4.50 billion for the third quarter.
CEO David A. Ricks commented on the earnings report on Tuesday and said
“Despite the ongoing disruption to healthcare caused by the global pandemic, we remain convinced of the strength of our underlying business and will continue to manage our operations to ensure long-term success.
Eli Lilly’s outlook for the full year
For the full year, Eli Lilly now forecasts a decline in earnings per share in a range of £4.75 to £4.90. His estimate for annual sales is now in the range of £18.14 to £18.52 billion. By way of comparison, experts are forecasting annual sales of £18.29 billion and earnings per share of £5.57 for the full year.
Eli Lilly has performed quite well on the stock market last year with an annual profit of over 15%. At the time of writing this article, the American pharmaceutical company is valued at £98 billion and has a price-earnings ratio of 21.78.