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Jim Cramer Says Eli Lilly Is Oversold, Stock Is Buy Tuesday

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Merck, Eli Lilly and Pfizer all posted earnings Tuesday, Oct. 27.

Jim Cramer went through each company and has his eye on one specific company: Eli Lilly.

Eli Lilly

Eli Lilly  (LLY) - Get Eli Lilly and Company Report said adjusted earnings for the three months ending in September were pegged at $1.54 per share, up 4% from the same period last year but well shy of the Street consensus forecast of $1.71 per share. Group revenues, the company said, rose 4.7% to $5.741 billion, a figure that also missed analysts' estimates of a $5.88 billion tally.

Looking into the final months of the year, Eli Lilly said its sees 2020 revenues of between $23.7 billion to $24.2 billion, matching its prior forecast, and reported earnings would be lowered to a range of $6.20 to $6.40 per share.

"Lilly delivered solid financial results in the third quarter, as our key growth products continued to be the catalyst for volume-based revenue growth. Despite ongoing healthcare disruptions from the global pandemic, we remain confident in the strength of our underlying business and continue to manage our operations to deliver success over the long term," said CEO David Ricks. "At the same time, I am incredibly proud of the commitment and progress Lilly has made in the fight against COVID-19."

Pfizer

Pfizer  (PFE) - Get Pfizer Inc. Report said adjusted earnings for the three months ending in September were pegged at 72 cents per share, down 5.3% from the same period last year and one penny ahead of the Street consensus forecast, Group revenues, Pfizer said, fell 4.5% from last year to $12.1 billion, just shy of analysts' estimates of a $12.31 billion tally.

Pfizer said it sees 2020 revenues in the range of $48.8 to $49.5 billion, compared to its prior forecast of $48.6 to $50.6 Billion, and adjusted earnings of $2.88 to $2.93 per share, a narrowed range from its previous estimate of between $2.85 to $2.95 per share.

“As we enter the final stretch of what has been a historically challenging year for the world, I could not be more proud of the extraordinary effort, dedication and resolve shown by Pfizer colleagues to address the COVID-19 pandemic with unprecedented speed, while never compromising on their commitment to the patient-centered, science-driven standards that guide everything we do," said CEO Albert Bourla. "I am more confident than ever in Pfizer’s future as we transition to a smaller, more agile, science-based pharmaceutical company with what we believe is an industry-leading innovative pipeline, a portion of which we were pleased to highlight at our recent investor day event.”

Merck

Merck  (MRK) - Get Merck & Co., Inc. Report posted an adjusted net income of $3 billion, or $1.74 a share, vs. income of $2.67 billion, or $1.51 a share, in the third quarter of 2019. Analysts polled by FactSet had been expecting earnings of $1.44 a share.

Revenue at the pharmaceutical giant came in at $12.6 billion, up 1% from last year's $12.4 billion though also above analysts’ forecasts of $12.2 billion.

“We continue to execute on our strategic priorities and remain confident we will achieve solid full-year revenue growth despite the impact of the ongoing Covid-19 pandemic," CEO Kenneth Frazier said in a statement. "Demand for our products remains robust, and production, supply and distribution of our medicines, vaccines, and animal health products are moving forward with minimal disruption.” 

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here.

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