Eli Lily and Company (NYSE: LLY) has confirmed that it will release its Q3 2021 earnings results on Tuesday, October 26, 2021, before the market opens.
What to look for
The company expects to post revenue growth driven by product sales such as Tyvyt, Olumiant, Jardiance, Verxenio, Trulicity, and Taltz. These products contributed to 17 percentage points to the company's revenue growth in Q2, representing around 54% of total revenue, and they are expected to continue driving growth in Q3. Despite normalcy gradually returning, the company anticipates the pandemic to continue impacting results.
Earnings: Stockearning’s Estimated EPS for Q3 2021 is $1.98 reflecting a 28.57 YoY increase. Historical EPS Performance shows that in the past 12 quarters, the company has topped estimates eight times (66%) and missed four times. In the last quarter, the company reported EPS of $1.87, missing estimates of $1.89. The company expects EPS of between $6.73 and $6.93 for the full year on a reported basis and between $7.8 and $8 on a non-GAAP basis.
Revenue: The company expects revenue of $6.66 billion in Q3 2021, representing a 15.98% YoY increase. During the second quarter, the company realized global revenue of $6.74 billion, representing a 23% increase YoY. In addition, revenue outside the US was $3.036 billion. The company anticipates revenue to be between $26.8 billion and $27.4 billion for the full year.
Stock movement: Since the last earnings release, Eli Lilly and Co stock has lost 1.2%. The share price has been DOWN 27 times out of the past 46 quarters following the earnings release. So, the historical price reaction suggests a 58% chance of the share price going DOWN after Eli Lily & Co releases Q3 2021 earnings. According to the Stockearning algorithm, the predicted stock move on the first day is 2%, while the predicted move on the seventh day is 3%.
What analysts are saying
Berenberg analyst Kerry Holdford upgraded the stock’s rating from “Hold” to “Buy” and also raised the price target from $240 to $270. In a research note, the analyst told investors that pipeline progress has "locked in" long-term sales growth for the company, which currently stands at around 10% per year through 2030 relative to the industry average of 4%. In addition, Holdford said, “confidence of catalysts, superior growth, and superior returns,” on R&D lust the recent stock pullback necessitated the investment thesis revisit.
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