Eli Lilly Reaffirms Outlook; Expects to Maintain Dividend (LLY)

Eli Lilly Reaffirms Outlook; Expects to Maintain Dividend (LLY)


Eli Lilly & Co. (LLY) reported that it plans on returning to revenue growth and expanding margins in 2014..

The company is now preparing to introduce new medicines in the beginning of next year, which will allow it to increase revenue and expand its margins. LLY reported that it plans to offset a loss of revenue from patent expirations using targeted growth initiatives and expense controls.

Looking forward, the company has maintained its near-term estimate of obtaining at least $20 billion in revenue, $3 billion in net income and $4 billion in operating cash flow through 2014.

LLY also noted that it expects to maintain its current dividend and reported that it would supplement its annual dividend of $2 billion per year with share buybacks of about $5 billion.

Eli Lilly shares were down 64 cents, or 1.27%, during pre-market trading Thursday. The stock has been mostly flat YTD.

The Bottom Line

Shares of Eli Lilly & Co. (LLY) have a 3.88% yield based on Wednesday’s closing price of $50.54.

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

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