Eli Lilly Q4 Profit Slips on Lower Revenue; Adjusted Net Beats View (LLY)

Eli Lilly Q4 Profit Slips on Lower Revenue; Adjusted Net Beats View (LLY)

RSS

Pharmaceutical company Eli Lilly & Co. (LLY) saw a dip in fourth quarter profits on Monday as competition from generic drugs put pressure on current products. However, the adjusted results exceeded the Wall Street view.

The Indianapolis, Indiana-based company earned $827 million, or 74 cents per share, in the fourth quarter. These results were down -4% from $858 million, or 77 cents per share, earned a year earlier.

Adjusting for special items such as restructuring costs, LLY earned 85 cents per share. This beat the Wall Street view of 78 cents per share.

Revenue dipped slightly to $5.96 billion, but this still exceeded analysts’ expectation of $5.81 billion.

The drug maker saw a decline in profits and revenue largely due to competition from generic drugs as patents begin to expire. However, the company was able to offset some of the negative impact from competition because of the strong sales of other drugs and various cost control measures.

Eli Lilly is now forecasting 2013 earnings will be up by 13% to 17% to $3.82 to $3.97 per share. The results will be helped by cost controls and R&D tax credits.

Eli Lilly shares were mostly flat during pre-market trading on Tuesday. The stock is up +34.29% over the past year.

The Bottom Line
Shares of Eli Lilly (LLY) have a dividend yield of 3.72% based on last night’s closing price of $52.64.

Eli Lilly & Co. (LLY) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Free Updates

Join over 100,000 investors who get the latest news from Dividend.com.

Best Dividend Stocks

Looking for stocks that are poised for growth and pay solid dividends? Visit our list of the:

Best Dividend Stocks

Partner Center

Best CD Rates

Sitting on some extra cash and looking for the most current and profitable CD Rates?

Get The Best CD Rates

14 Day Free Trial

Earn more from your dividend portfolio within the next 14 days.

Sign Up Today