Eli Lilly & Co. (ELY) - Get Report posted stronger-than-expected third quarter earnings Wednesday, and boosted its full-year profit guidance thanks in part to growth in sales for the drugmaker's newer medicines.
Eli Lilly said earnings for the three months ending in September came in at $1.48 per share, up 6.5% from the same period last year and 8 cents ahead of the Street consensus forecast. Group revenues, Eli Lily said, rose 3% to $5.477 billion, Eli Lilly said, a figure that came in just below analysts' estimates.
Looking into the final months of 2019, Eli Lilly said it sees full-year non-GAAP earnings of between $5.75 to $5.85 per share, up from a prior range of $5.67 to $5.77 per share.
"Lilly continued to deliver strong results in the third quarter, due in large part to the growth of our newer medicines and our ability to effectively manage costs while supporting global launches in highly competitive classes and funding our next generation of new therapies," said CEO David Ricks.
"Lilly's revenue growth is being driven by volume, not price, as more and more patients are benefiting from our recently launched medicines," he added. "Our sustained investments in oncology, diabetes, immunology, and neuroscience research continue to be productive, with several new medicines expected to be submitted, launch and then reach patients over the next few years."
Eli Lilly shares were marked 5.5% lower at the start of trading following the earnings release to change hands at a one-year low of $103.75 each, a move that would extend the stock's year-to-date decline to around 10.3%.
Eli Lilly's U.S. revenues were largely flat to last year at $3.06 billion, the company said, while international sales jumped 8% to $2.416 billion. Gross margins improved 20 basis points to 78.5%, Eli Lilly said, "primarily due to the favorable effect of foreign exchange rates on international inventories sold, lower intangibles amortization expense and greater manufacturing efficiencies, partially offset by unfavorable product mix primarily as a result of the loss of patent exclusivity for Cialis, and the impact of lower realized prices on revenue."