Eli Lilly ( LLY) beat third-quarter estimates on an adjusted basis and raised fourth-quarter and full-year guidance on Thursday in addition to announcing a new licensing agreement for type I diabetes candidate Teplizumab. Earnings increased 6% to $926.3 million, or 85 cents a share, compared with $873.6 million, or 80 cents a share, in the comparable 2006 period. Third-quarter 2007 reported results include a charge of 6 cents a share for a reduction in expected insurance recoveries. Adjusted net income rose 20% to $996.4 million, or 91 cents a share, compared with $832 million, or 77 cents a share, a year earlier. Analysts surveyed by Thomson Financial were expecting 87 cents a share on revenue of $4.5 billion. Revenue increased 19% to $4.59 billion from $3.86 billion a year ago. Sales of depression drug Cymbalta climbed 47% to $513.2 million on strong demand and foreign exchange rates. Looking ahead, Lilly raised fourth-quarter guidance for adjusted earnings to 86 cents to 91 cents a share, excluding a 3-cent-a-share charge for research and development expenses related to a licensing agreement announced Thursday and mentioned below. The company now expects full-year pro forma adjusted earnings in the range of $3.50 to $3.55 a share, or $2.76 to $2.81 a share on a reported basis.
Stocks soar as the gross domestic product rises at an annualized rate of 3.5% in the third quarter and continuing jobless claims fall. Gregg Greenberg recaps the action in The Real Story video (above).