Eli Lilly and Company (NYSE:LLY) Q1 2024 Earnings Conference Call April 30, 2024 10:00 AM ET Company Participants Joe Fletcher – Senior Vice President-Investor Relations Dave Ricks – Chief Executive Officer Anat Ashkenazi – Chief Financial Officer Dan Skovronsky – Chief Scientific Officer and President-Lilly Immunology Anne White – President-Lilly Neuroscience Jake Van Naarden – President-Loxo Patrik Jonsson – President-Lilly Diabetes and Obesity and Lilly USA Conference Call Participants Chris Schott – JPM ...

Eli Lilly and Company (LLY) reported first-quarter 2024 adjusted earnings per share (“EPS”) of $2.58, which beat the Zacks Consensus Estimate of $2.53 per share. Earnings rose 59% year over year.Revenues of $8.77 billion rose 26% year over year. Total revenues, however, missed the Zacks Consensus Estimate of $8.81 billion.Quarter in DetailIn the reported quarter, net realized prices rose 10%, while volumes rose 16%.Key growth products (select products launched prior to 2022 like Cyramza, Emgality, Jardiance ...

Core Viewpoint - Eli Lilly's stock surged over 5% following strong Q1 earnings and an increased full-year outlook, despite mixed results compared to analysts' expectations [1][3]. Financial Performance - For Q1, Eli Lilly reported a revenue increase of 26% year-over-year, reaching $8.8 billion, while earnings per share (EPS) rose by 59.3% to $2.58 [1]. - Analysts had anticipated revenue of $8.9 billion and EPS of $2.46, indicating that the actual revenue fell slightly short of expectations [3]. Full-Year Outlook - Eli Lilly raised its full-year revenue forecast to between $42.4 billion and $43.6 billion, and EPS expectations to between $13.50 and $14.00, up from previous estimates of $40.4 billion to $41.6 billion in revenue and $12.20 to $12.70 in EPS [3]. Market Sentiment - Analysts maintain a bullish outlook on Eli Lilly, with a consensus target price of $813.32, suggesting an upside of just over 5% from current levels, and a consensus recommendation of "Buy" [5]. - However, some analysts, like Damien Conover from Morningstar, believe the stock is overvalued, with a long-term fair value estimate of $500, indicating a potential downside of over 35% from current levels [5]. Strategic Initiatives - Eli Lilly is investing in pipeline development and expanding manufacturing capacity to increase the availability of its incretin medicines to more patients [4].

Revenue and Income Growth - Revenue for the three months ended March 31, 2024, was $8,768.0 million, a 26% increase from $6,960.0 million in the same period of 2023[111]. - Net income rose to $2,242.9 million, reflecting a 67% increase compared to $1,344.9 million in the prior year[111]. - Diluted earnings per share increased to $2.48, up 66% from $1.49 in the same quarter of 2023[111]. - U.S. revenue increased by 28% to $5,694.4 million, driven by strong demand for Zepbound, Mounjaro, and Verzenio, despite a decrease in Trulicity[131]. - Outside the U.S., revenue rose by 22% to $3,073.7 million, primarily due to increased volume from Mounjaro, Verzenio, Jardiance, and Tyvyt[131]. - Revenue of Mounjaro in the U.S. was $1.52 billion for the three months ended March 31, 2024, up from $536.4 million in the same period in 2023, reflecting higher realized prices and increased demand[133]. - Trulicity revenue decreased by 30% in the U.S. during the same period, primarily due to supply constraints and competitive dynamics[133]. - Verzenio revenue increased by 38% in the U.S. and 42% outside the U.S. during the three months ended March 31, 2024, driven by increased demand[133]. Product Development and Regulatory Approvals - Approximately 50 new medicine candidates are currently in clinical development or under regulatory review, with several in late-stage trials[113]. - Empagliflozin (Jardiance) received regulatory approval in the U.S. and EU in 2023, and in Japan in 2024 for chronic kidney disease and obesity indications[114]. - Tirzepatide (Mounjaro, Zepbound) is undergoing Phase 3 trials for obesity and obstructive sleep apnea, with recent announcements indicating successful primary endpoint results[114]. Market and Pricing Pressures - The increase in revenue was primarily driven by higher sales of Mounjaro, Zepbound, Verzenio, and Jardiance, despite a decline in Trulicity sales[111]. - The Inflation Reduction Act of 2022 may lead to significant pricing pressures, with Jardiance selected for government-set prices effective in 2026[120]. - The company anticipates additional significant products will be selected for government pricing, potentially accelerating revenue erosion prior to exclusivity expirations[120]. - The IRA's provisions are expected to significantly influence business strategies, particularly affecting investment attractiveness in small molecule innovation[122]. Operational Challenges - Demand for incretin medicines continues to exceed production capacity, leading to wholesaler backorders and tight supply expected to persist[123]. - The company is expanding manufacturing capacity and exploring different delivery methods for tirzepatide to meet demand[123]. - Increased research and development expenses, along with marketing and administrative costs, partially offset the gains in net income and earnings per share[111]. - Regulatory scrutiny and potential changes in tax laws may adversely impact future consolidated results and cash flows[125][126]. - Foreign currency exchange rate fluctuations pose a risk to consolidated results, particularly against the euro, Japanese yen, and Chinese yuan[127]. - Ongoing litigation and investigations related to pricing and access issues could negatively impact business operations and results[122]. Financial Position - Gross margin for the three months ended March 31, 2024, was $7.09 billion, representing 80.9% of revenue, an increase from 76.6% in the same period in 2023[136]. - Research and development expenses increased by 27% to $2.52 billion, driven by higher development expenses for late-stage assets[136]. - Total debt increased to $26.21 billion as of March 31, 2024, up by $986.1 million from $25.23 billion as of December 31, 2023[138]. - Cash and cash equivalents decreased to $2.46 billion as of March 31, 2024, compared to $2.82 billion as of December 31, 2023[138]. - The company anticipates funding a proposed acquisition of a manufacturing facility in Wisconsin primarily through cash on hand and the issuance of commercial paper[138]. - The effective tax rate for the three months ended March 31, 2024, was 11.6%, down from 12.1% in the same period in 2023[136]. - The company has $7.42 billion of unused committed bank credit facilities, with $7.00 billion available to support its commercial paper program[138].

Eli Lilly and Company Q1 2024 Earnings Call April 30, 2024 ...

Investors are cheering the big-pharma company's improved outlook.Shares of Eli Lilly and Company (LLY 4.95%) were jumping 6% higher as of 11:03 a.m. ET on Tuesday. The solid gain came after the big drugmaker announced its first-quarter 2024 results.Lilly reported Q1 revenue of $8.77 billion, up 26% year over year. This result came in a little below the average analyst's revenue estimate of $8.92 billion.However, Lilly made up for the miss with its bottom line. The company posted Q1 net income of $2.24 billi ...

Eli Lilly (LLY) reported $8.77 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 26%. EPS of $2.58 for the same period compares to $1.62 a year ago.The reported revenue represents a surprise of -0.47% over the Zacks Consensus Estimate of $8.81 billion. With the consensus EPS estimate being $2.53, the EPS surprise was +1.98%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ...

Key TakeawaysEli Lilly shares jumped in early trading Tuesday as the drugmaker reported first-quarter earnings above expectations and raised full year revenue and earnings guidance.Weight-loss drugs Mounjaro and Zepbound continue to be massive revenue drivers for the company as demand has soared in recent years.The stock, which has nearly doubled in the past year, is on track to set a new record high Tuesday. Eli Lilly (LLY) stock jumped in early trading Tuesday after the drugmaker reported first-quarter ea ...

Eli Lilly (LLY) came out with quarterly earnings of $2.58 per share, beating the Zacks Consensus Estimate of $2.53 per share. This compares to earnings of $1.62 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.98%. A quarter ago, it was expected that this drugmaker would post earnings of $2.47 per share when it actually produced earnings of $2.49, delivering a surprise of 0.81%.Over the last four quarters, the company has sur ...

U.S. stock futures ticked lower in premarket trading on Tuesday as earnings reports from consumer giants continued to roll in and the Federal Reserve began its two-day policy meeting. Shares of Eli Lilly (LLY) soared in early trading after strong sales of its diabetes treatment Mounjaro and weight-loss counterpart Zepbound led it to top first-quarter estimates and raise its full-year guidance. Dow components Coca-Cola (KO) and McDonald's (MCD) also reported earnings before the bell, with Coca-Cola beating ...