|
Related Topics
|
Category: Stock Market and Eli Lilly
Date: 25 April 2020 Stock Price: $162.93 We take a look at the 1st quarter earnings report of their 2020 fiscal year of Eli Lilly and Co, pharmaceuticals company that creates medicines used across the globe.
|
About Eli Lilly
Lilly is a global healthcare leader that unites caring with discovery to create medicines that make life better for people around the world. We were founded more than a century ago by a man committed to creating high-quality medicines that meet real needs, and today we remain true to that mission in all our work. Across the globe, Lilly employees work to discover and bring life-changing medicines to those who need them, improve the understanding and management of disease, and give back to communities through philanthropy and volunteerism. F-LLY
Overview of Eli Lilly's 1st quarter 2020 earnings report
Data below refers to the latest quarters data unless specified otherwise:
- Total revenues: $11.365 billion (up from $10.474 billion for the same period of the previous year)
- Revenues increased by 9% over the last 12 months
- Expenses: $8.355 billion (up from $7.629 billion for the same period of the previous year)
- Expenses increased by 9% over the last 12 months
- Net earnings: $1.693 billion (down from $2.010 billion for the same period of the previous year)
- Diluted earnings per share: $2.03 (down from $2.32 for the same period of the previous year)
- PE ratio of Eli Lilly: 16.9
- Dividend declared: $0.43 (up from $0.39 for the same period of the previous year)
- Dividend yield: 1.27%
- Diluted weighted-average shares outstanding: 816 million (down from 852 million for the same period of the previous year)
- Cash and cash equivalents: $24 billion
- Cash and cash equivalents per share: $29.41
- Cash and cash equivalents makes up 21.7% of Eli Lilly' market capital
- Cash and cash equivalents makes up 12.12% of Eli Lilly' total assets
- Card member loans: $85 billion
- Card member loans makes up 42.9% of Eli Lilly' total assets
- Stockholders equity in Eli Lilly: $23.0 billion
- Stockholders equity per share: $28.18
- So Eli Lilly is trading a 4.79 times its stockholders equity which is outside the expected range of between 2 and 4 which most firms ten to trade at.
Lilly's management commentary on their 1st quarter 2020 earnings report
Eli Lilly and Company (NYSE: LLY) today announced financial results for the first quarter of 2020.
“Lilly is rising to meet the challenges of the COVID-19 pandemic, whether it be by supporting our employees, our communities, patients with chronic diseases who are the most vulnerable to the virus, or directly attacking the disease with new and existing therapies,” said David A. Ricks, Lilly’s chairman and CEO. “Lilly’s purpose - to make life better - has never been more important. We're focused on reliably supplying medicines, keeping our employees safe and pushing scientific efforts at top speed to defeat COVID-19.
We're also committed to improving the affordability of and access to our medicines, particularly insulin, during these challenging times." “Lilly exited 2019 with strong revenue growth and margin expansion, driven by the uptake of our newer medicines. That momentum continued in Q1 2020 and was augmented by higher patient and supply chain purchasing due to the COVID-19 pandemic," commented Josh Smiley, Lilly's CFO. "Our revenue and operating margin outlook for 2020 is unchanged, but the economic and healthcare consequences of this pandemic are uncertain and could negatively affect our financial results later in 2020 and beyond, due to reduced non-COVID healthcare activities and global economic challenges. We are therefore widening the range of our 2020 EPS guidance to reflect both our underlying strong performance as well as future uncertainty; however, the long-term fundamentals of our business remain strong, as does our financial outlook for the mid-2020s and beyond.”
“Lilly is rising to meet the challenges of the COVID-19 pandemic, whether it be by supporting our employees, our communities, patients with chronic diseases who are the most vulnerable to the virus, or directly attacking the disease with new and existing therapies,” said David A. Ricks, Lilly’s chairman and CEO. “Lilly’s purpose - to make life better - has never been more important. We're focused on reliably supplying medicines, keeping our employees safe and pushing scientific efforts at top speed to defeat COVID-19.
We're also committed to improving the affordability of and access to our medicines, particularly insulin, during these challenging times." “Lilly exited 2019 with strong revenue growth and margin expansion, driven by the uptake of our newer medicines. That momentum continued in Q1 2020 and was augmented by higher patient and supply chain purchasing due to the COVID-19 pandemic," commented Josh Smiley, Lilly's CFO. "Our revenue and operating margin outlook for 2020 is unchanged, but the economic and healthcare consequences of this pandemic are uncertain and could negatively affect our financial results later in 2020 and beyond, due to reduced non-COVID healthcare activities and global economic challenges. We are therefore widening the range of our 2020 EPS guidance to reflect both our underlying strong performance as well as future uncertainty; however, the long-term fundamentals of our business remain strong, as does our financial outlook for the mid-2020s and beyond.”
2020 Financial Guidance
The company has updated certain elements of its 2020 financial guidance on a reported basis and a non-GAAP basis to reflect both management's expectations for operational performance and the uncertainty surrounding the extent and duration of the impact of the COVID-19 pandemic. Key management assumptions supporting the updated guidance include:
Based on the key assumptions outlined above, the company has adjusted earnings per share for 2020 to now be in the range of $6.20 to $6.40 on a reported basis and $6.70 to $6.90 on a non-GAAP basis
The company has updated certain elements of its 2020 financial guidance on a reported basis and a non-GAAP basis to reflect both management's expectations for operational performance and the uncertainty surrounding the extent and duration of the impact of the COVID-19 pandemic. Key management assumptions supporting the updated guidance include:
- The increased customer buying patterns and patient prescription trends associated with COVID-19 that were experienced in the first quarter of 2020 will largely be reversed over the course of 2020;
- The reduction in new-to-brand prescription trends will peak in the second quarter of 2020 in the U.S. and much of Europe;
- Healthcare activity, including non-COVID-19 related patient visits with their physicians, will align more closely with historical levels in the second half of 2020;
- Increased utilization of patient affordability programs and changes in segment mix due to increased U.S. unemployment will negatively impact U.S. pricing;
- Clinical trial enrollment in existing studies, as well as initiation of new clinical trials, will resume in the second half of 2020; and
- Investment in COVID-19 related research, testing and support will continue throughout 2020.
Based on the key assumptions outlined above, the company has adjusted earnings per share for 2020 to now be in the range of $6.20 to $6.40 on a reported basis and $6.70 to $6.90 on a non-GAAP basis
Eli Lilly (NYSE: LLY) stock price history
The image below, obtained from Google, shows the stock price history of American Express over the last 5 years. And it's been a pretty good time for Lilly stockholders. 5 years ago the stock was trading at around $73 a stock and its currently trading at $162.93 a stock. That's a very good return of 7% provided to American Express stockholders over the last 5 years.
The stock of American Express is trading at a lot closer to its 52 week high of $164.90 than it is to its 52 week low of $101.36 which to us is an indication that the short term sentiment and momentum of American Express' stock is positive at this point in time.
The stock of American Express is trading at a lot closer to its 52 week high of $164.90 than it is to its 52 week low of $101.36 which to us is an indication that the short term sentiment and momentum of American Express' stock is positive at this point in time.
Searches for Eli Lilly (LLY) over the last 12 months
The graphic below obtained from Google Trends shows the number of searches for Eli Lilly over the last 12 months. Searches reached a peak towards the end of December 2019 and again in middle of March 2020.
The graphic below shows the searches for Eli Lilly stock price by subregion within the United States and very few subregions actually searched for Ei Lilly stock price over the period in question
Recent coverage of Eli Lilly
The extract below discusses some of the latest news regarding American Express as obtained from Thestreet.com
Eli Lilly & Co. (LLY) posted stronger-than-expected first quarter earnings Thursday, and nudged its 2020 profit guidance modestly higher, as sales of its Trulicity diabetes treatment hit $1.3 billion. Eli Lilly said non-GAAP earnings for the three months ending in March were pegged at $1.75 per share, a 31.6% increase from the same period last year and well ahead of the Street consensus forecast. Group revenues, Lilly said, rose 15% to $5.86 billion, again topping analysts forecasts of a $5.48 billion tally.
Looking into 2020, Lilly said it sees non-GAAP earnings in the range of $6.70 to $6.90 per share, a 10 cent improvement to the higher end of its prior forecast. Full year revenues were confirmed in the region of $23.6 billion to $24.2 billion, the company said. "Lilly is rising to meet the challenges of the COVID-19 pandemic, whether it be by supporting our employees, our communities, patients with chronic diseases who are the most vulnerable to the virus, or directly attacking the disease with new and existing therapies," said CEO David Ricks. "Lilly's purpose - to make life better - has never been more important. We're focused on reliably supplying medicines, keeping our employees safe and pushing scientific efforts at top speed to defeat COVID-19."
"We're also committed to improving the affordability of and access to our medicines, particularly insulin, during these challenging times," he added.
Eli Lilly shares were marked 1.1% higher in early trading Thursday to change hands at $158.60 each, a move that would extend the stock's year-to-date gain to around 20%. Trulicity, the group's diabetes treatment, saw sales rise 40% from last year to a quarterly record of $1.229 billion, while its severe plaque psoriasis drug Taltz booked a 75% gain from the first quarter of 2019 to $443.5 million
Read the full article here
Eli Lilly & Co. (LLY) posted stronger-than-expected first quarter earnings Thursday, and nudged its 2020 profit guidance modestly higher, as sales of its Trulicity diabetes treatment hit $1.3 billion. Eli Lilly said non-GAAP earnings for the three months ending in March were pegged at $1.75 per share, a 31.6% increase from the same period last year and well ahead of the Street consensus forecast. Group revenues, Lilly said, rose 15% to $5.86 billion, again topping analysts forecasts of a $5.48 billion tally.
Looking into 2020, Lilly said it sees non-GAAP earnings in the range of $6.70 to $6.90 per share, a 10 cent improvement to the higher end of its prior forecast. Full year revenues were confirmed in the region of $23.6 billion to $24.2 billion, the company said. "Lilly is rising to meet the challenges of the COVID-19 pandemic, whether it be by supporting our employees, our communities, patients with chronic diseases who are the most vulnerable to the virus, or directly attacking the disease with new and existing therapies," said CEO David Ricks. "Lilly's purpose - to make life better - has never been more important. We're focused on reliably supplying medicines, keeping our employees safe and pushing scientific efforts at top speed to defeat COVID-19."
"We're also committed to improving the affordability of and access to our medicines, particularly insulin, during these challenging times," he added.
Eli Lilly shares were marked 1.1% higher in early trading Thursday to change hands at $158.60 each, a move that would extend the stock's year-to-date gain to around 20%. Trulicity, the group's diabetes treatment, saw sales rise 40% from last year to a quarterly record of $1.229 billion, while its severe plaque psoriasis drug Taltz booked a 75% gain from the first quarter of 2019 to $443.5 million
Read the full article here
Eli Lilly (NYSE: LLY) latest stock valuation
So what is American Express stock worth based on the release of their latest earnings report? Based on American Express' latest earnings report our valuation models provide a target (full value) price of American Express stock at $144.80 a stock (up slightly from our 3rd quarter 2019 earnings review of American Express). Therefore we believe the stock of American Express is undervalued at its current price of $135.11.
We usually recommend that long term fundamental or value investors look to enter the stock at 10% below our target (full value) price which in this case is $144.80, so a good entry point into American Express' stock would be at $130.30 or below.
We expect the stock of American Express to tick up in coming weeks and months to levels closer to our target price (full value price).
We usually recommend that long term fundamental or value investors look to enter the stock at 10% below our target (full value) price which in this case is $144.80, so a good entry point into American Express' stock would be at $130.30 or below.
We expect the stock of American Express to tick up in coming weeks and months to levels closer to our target price (full value price).
Next earnings release date for Eli Lilly
It is expected that Eli Lilly will release their 2nd quarter 2020 earnings report will be released in late July 2020