Earning reports:
Eli Lilly (NYSE:LLY) Q3 results beat analysts' estimates but the company lowered its FY22 outlook. Q3 non-GAAP EPS rose +12% Y/Y to $1.98, while revenue increased +2.5% Y/Y to $6.94B. The company said the revenue growth was driven by a 14% increase in volume, partially offset by a 7% decline due to lower realized prices and a 4% decrease from unfavorable impact of foreign exchange rates. Sales of diabetes therapies Trulicity rose +16% Y/Y to $1.85B, and Jardiance +47% to $573.3M. New drug Mounjaro for type 2 diabetes saw sales of $187.3M. Revenue from COVID-19 antibodies grew +78% Y/Y to $386.6M. Meanwhile, Olumiant sales fell -55% to $182.9M. Breast cancer drug Verzenio sales increased +84% Y/Y to $617.7M. Cancer therapy Retevmo revenue grew 21% to $40.5M. Gastric cancer drug Tyvyt sales fell -39% Y/Y to $76.8M. Meanwhile, Migraine drug Emgality revenue grew +20% Y/Y to $168.5M.
However, sales of chemotherapy Alimta declined -74% Y/Y to $119.4M. Revenue from Forteo, which is used to treat postmenopausal women who have osteoporosis, declined -12% Y/Y to $177.1M. Lilly added that revenue in the U.S. increased 11% to $4.42B, but revenue outside the U.S. fell 9% to $2.52B. Gross margin as a percent of revenue was 77.3%, a decrease of 1.6 percentage points compared with Q3 2021. Q3 research and development expenses increased 6% Y/Y to $1.80B.
Outlook:
Lilly said it now expects 2022 revenue to be between $28.5B and $29.0B (prior outlook provided during Q2 results was $28.8B to $29.3B) consensus $28.76B. The company said the new revenue outlook includes an additional $300M unfavorability from foreign exchange rates since its previous guidance, for a total impact of ~$1B for the full year. Lilly now anticipates non-GAAP EPS to be between $7.70 and $7.85 (prior outlook $7.90 to $8.05) consensus $7.95. GAAP EPS is expected between $6.50 to $6.65 (prior range $6.50 to $6.65). The company said the reductions in the reported and non-GAAP EPS ranges reflect the unfavorable impact of foreign exchange rates and $0.06 EPS impact linked with acquired IPR&D and development milestone charges in Q3 2022.
Fundamental:
Eli Lilly and Company (NYSE:LLY) is one of the leaders in the treatment of diabetes and obesity and is committed to expanding its presence in the treatment of cancer and autoimmune diseases. In the past, the company showed significant growth in revenue, EBITDA, and margins, which attracted institutional investors and contributed to the increase in the company's capitalization. Mr. Market is capitalizing on FDA approval and Medicare's positive decision on donanemab, which is being investigated in phase 3 clinical trial. However, the controversial efficacy results and the negative safety profile shown in phase 2 call into question the objectivity of assessing the prospects of this medicine. Financial indicators that are significantly higher than the average values of the pharmaceutical industry, declining revenue, a relatively small number of product candidates in Phase 2/3 clinical trials, will be one of the reasons for the start of a corrective movement in the company's shares. And you can also find a lot of articles on market says they are waiting for "The Correction". Possibly I will say no, buy every dip!
Technical:
The trendline support and resistance is from weekly basis, and since 8&21 MAs already catching up on daily basis, therefore, there's no reason that we say it is the top of the LLY, because I could not see the uptrend is end right here. Keep making new highs are always scary, however, if LLY can keep deliver the good financial result, why it can not making another new high? Can we see any down pressures? Therefore, from trend trading side of view, buy every dips if trend still there.
The investments and idea published may not be suitable for all investors. If you have any doubts as to the merits of an investment, you should seek advice from independent financial advisor or other professionals to determine what may be best for your individual needs. We do not and cannot guarantee that your use of our APP and/or any of its features will generate profits. All opinions, news, reviews, research, analysis, prices, or other information contained on or provided via this site are provided on an “as is” basis as general market commentary and/or expressions of opinion only. Information may not be complete, accurate or up to date and may not be suitable for every individual, nor be a suitable basis for an investment decision. No representation, warranty, undertaking, assurance or guarantee (express or implied) is made or given as to the availability, adequacy, accuracy, completeness, reasonableness or appropriateness of any of the information or opinions provided or expressed on or through this site. There is no obligation to notify you of any corrections or modifications.
Eli Lilly (NYSE:LLY) Q3 results beat analysts' estimates but the company lowered its FY22 outlook. Q3 non-GAAP EPS rose +12% Y/Y to $1.98, while revenue increased +2.5% Y/Y to $6.94B. The company said the revenue growth was driven by a 14% increase in volume, partially offset by a 7% decline due to lower realized prices and a 4% decrease from unfavorable impact of foreign exchange rates. Sales of diabetes therapies Trulicity rose +16% Y/Y to $1.85B, and Jardiance +47% to $573.3M. New drug Mounjaro for type 2 diabetes saw sales of $187.3M. Revenue from COVID-19 antibodies grew +78% Y/Y to $386.6M. Meanwhile, Olumiant sales fell -55% to $182.9M. Breast cancer drug Verzenio sales increased +84% Y/Y to $617.7M. Cancer therapy Retevmo revenue grew 21% to $40.5M. Gastric cancer drug Tyvyt sales fell -39% Y/Y to $76.8M. Meanwhile, Migraine drug Emgality revenue grew +20% Y/Y to $168.5M.
However, sales of chemotherapy Alimta declined -74% Y/Y to $119.4M. Revenue from Forteo, which is used to treat postmenopausal women who have osteoporosis, declined -12% Y/Y to $177.1M. Lilly added that revenue in the U.S. increased 11% to $4.42B, but revenue outside the U.S. fell 9% to $2.52B. Gross margin as a percent of revenue was 77.3%, a decrease of 1.6 percentage points compared with Q3 2021. Q3 research and development expenses increased 6% Y/Y to $1.80B.
Outlook:
Lilly said it now expects 2022 revenue to be between $28.5B and $29.0B (prior outlook provided during Q2 results was $28.8B to $29.3B) consensus $28.76B. The company said the new revenue outlook includes an additional $300M unfavorability from foreign exchange rates since its previous guidance, for a total impact of ~$1B for the full year. Lilly now anticipates non-GAAP EPS to be between $7.70 and $7.85 (prior outlook $7.90 to $8.05) consensus $7.95. GAAP EPS is expected between $6.50 to $6.65 (prior range $6.50 to $6.65). The company said the reductions in the reported and non-GAAP EPS ranges reflect the unfavorable impact of foreign exchange rates and $0.06 EPS impact linked with acquired IPR&D and development milestone charges in Q3 2022.
Fundamental:
Eli Lilly and Company (NYSE:LLY) is one of the leaders in the treatment of diabetes and obesity and is committed to expanding its presence in the treatment of cancer and autoimmune diseases. In the past, the company showed significant growth in revenue, EBITDA, and margins, which attracted institutional investors and contributed to the increase in the company's capitalization. Mr. Market is capitalizing on FDA approval and Medicare's positive decision on donanemab, which is being investigated in phase 3 clinical trial. However, the controversial efficacy results and the negative safety profile shown in phase 2 call into question the objectivity of assessing the prospects of this medicine. Financial indicators that are significantly higher than the average values of the pharmaceutical industry, declining revenue, a relatively small number of product candidates in Phase 2/3 clinical trials, will be one of the reasons for the start of a corrective movement in the company's shares. And you can also find a lot of articles on market says they are waiting for "The Correction". Possibly I will say no, buy every dip!
Technical:
The trendline support and resistance is from weekly basis, and since 8&21 MAs already catching up on daily basis, therefore, there's no reason that we say it is the top of the LLY, because I could not see the uptrend is end right here. Keep making new highs are always scary, however, if LLY can keep deliver the good financial result, why it can not making another new high? Can we see any down pressures? Therefore, from trend trading side of view, buy every dips if trend still there.
The investments and idea published may not be suitable for all investors. If you have any doubts as to the merits of an investment, you should seek advice from independent financial advisor or other professionals to determine what may be best for your individual needs. We do not and cannot guarantee that your use of our APP and/or any of its features will generate profits. All opinions, news, reviews, research, analysis, prices, or other information contained on or provided via this site are provided on an “as is” basis as general market commentary and/or expressions of opinion only. Information may not be complete, accurate or up to date and may not be suitable for every individual, nor be a suitable basis for an investment decision. No representation, warranty, undertaking, assurance or guarantee (express or implied) is made or given as to the availability, adequacy, accuracy, completeness, reasonableness or appropriateness of any of the information or opinions provided or expressed on or through this site. There is no obligation to notify you of any corrections or modifications.