Before the market open on Thursday, the Indianapolis-based drug manufacturing company reported earnings of 78 cents per share, which was in-line with analysts' forecasts. Revenue rose by 5% year-over-year to $5.37 billion, higher than analysts' forecasts for revenue of $5.32 billion.
Shares of Eli Lilly are declining as headlines about the biotechnology sector overshadow the company's fundamentals, TheStreet's Jim Cramer said in a new Action Alerts PLUS article on Thursday morning. Eli Lilly makes up about 1.4% of the charitable trust's portfolio.
Biotech shares are falling ahead of tonight's GOP debate, Cramer said. Additionally, former TuringPharmaceuticals CEO Martin Shkreli will testify before Congress about drug price increases next week, which is "adding fuel to the fire," Cramer said.
"We own this name for the long term and we will continue to keep an eye on the shares, but we ultimately believe that LLY is currently a victim of the widespread uncertainty clouding biotechs during this time of year," Cramer and Research Director Jack Mohr said in the article.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rates this stock as a "buy" with a ratings score of B. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: LLY