Shares in Eli Lilly (NYSE:LLY) fell slightly today as the company met expectations on Wall Street with its 1st quarter financial results.
The company has faced its share of issues in the last year – Lilly took a $150 million hit in November after its Alzheimer’s drug failed in a clinical trial and this month, the FDA rejected its rheumatoid arthritis drug. But the company’s diabetes therapies, such as Trulicity and Humalog, helped to propel the company to an adjusted quarterly profit that beat expectations on The Street.
“We are encouraged by another solid performance from Lilly’s overall diabetes franchise,” Leerink Partners analyst Seamus Fernandez said in a note, according to Reuters.
The Indianapolis-based company posted a net loss of -$110.8 million, or -10¢ per share, on sales of $5.23 billion for the 3 months ended March 31, for bottom-line loss of -125% on sales growth of 8% compared with the same period last year.
Adjusted to exclude 1-time items, earnings per share were 98¢, ahead of consensus on The Street, where analysts were looking for sales of $5.28 billion.
“Lilly’s new product launches, including Trulicity and Taltz, led the company to a strong quarter of volume-driven revenue growth. We achieved this growth while maintaining our commitment to expand margins and improve productivity,” president & CEO David Ricks said in prepared remarks. “The progress we made in the 1st quarter continues the positive momentum we’ve built over the past few years. We remain on track to sustain a steady flow of innovation that has the potential to improve patients’ lives and create value for shareholders.”
Earnings per share for 2017 are being revised to be in the range of $2.60 to $2.70 on a reported basis, due to severance costs incurred as a result of actions taken to reduce the company’s cost structure. Earnings per share for 2017 are being reaffirmed to be $4.05 to $4.15 on a non-GAAP basis.
Lilly said it expects to post adjusted EPS of $4.05 to $4.15 for 2017.
LLY shares were trading at $81.39 apiece today in morning trading, down -2.4%.