Eli Lilly and Co Guides FY2015 EPS Below Views (LLY)

Eli Lilly and Co Guides FY2015 EPS Below Views (LLY)


Before the opening bell on Wednesday, Eli Lilly (LLY) announced its 2015 fiscal guidance and updated its its 2014 earnings expectations.

The pharmaceutical company cut its EPS expectations for 2014 to a range of $2.15 to $2.33 on a reported basis from its previous range of $2.36 to $2.44. According to the company, the lower expected FY2014 EPS is “due to fourth-quarter global restructuring charges in an effort to reduce the company’s cost structure and acquired in-process research and development charges associated with the Adocia collaboration.”

For FY2015, the company expects EPS of $2.40-$2.50 on a reported basis, and non-GAAP EPS in the range of $3.10-$3.20. the FY2015 EPS guidance is below analyst expectations of $3.21. The company sees 2015 revenue in the range of $20.3 billion to $20.8 billion, which is below the analyst estimate of $20.88 billion.

LLY chairman and CEO John C. Lechleiter, Ph.D., had the following comments: “We are successfully moving from a challenging period of patent expirations to a period of resumed growth, led by diabetes, oncology and animal health. We are launching new products and competing more effectively. We also retain one of the strongest pipelines in our history. Our refined strategic direction gives us a blueprint that will provide greater focus for our research and commercial activities and help Lilly respond to an ever more challenging environment. In these ways and more, we’ll continue to create value for all our stakeholders while improving the lives of patients.”

LLY Dividend Snapshot

As of Market Close on January 6, 2015

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LLY stock was up 77 cents, or 1.1%, in pre-market trading.

The Bottom Line

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

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