Lilly Cuts FY22 Earnings Outlook Again - Update

While announcing third-quarter results, drug maker Eli Lilly and Co. (LLY) on Tuesday lowered its 2022 earnings outlook again, along with revenue view, mainly reflecting unfavorable impact of foreign exchange rates.

In pre-market activity on the NYSE, Lilly shares were losing around 0.7 percent to trade at $359.67.

For the year, the company now expects earnings in the range of $6.50 to $6.65 on a reported basis and $7.70 to $7.85 on an adjusted basis.

The company previously expected reported earnings per share in the range of $6.96 to $7.11 and adjusted earnings per share in the range of $7.90 to $8.05.

On average, ten analysts polled by Thomson Reuters expected earnings of $7.99 per share for the year. Analysts' estimates typically exclude special items.

The reported as well as adjusted outlook includes $0.67 of acquired IPR&D and development milestone charges.

Lilly said the proposed reductions in the outlook ranges both reflect the unfavorable impact of foreign exchange rates as well as the $0.06 earnings per share impact associated with acquired IPR&D and development milestone charges in the third quarter.

From last year, reported earnings are expected to be 6 percent to 9 percent higher, and adjusted earnings are expected to rise 4 percent to 6 percent.

Further, Lilly now anticipates 2022 revenue to be between $28.5 billion and $29.0 billion. This includes an additional $300 million of unfavorability from foreign exchange rates.

The company previously expected 2022 revenue to be between $28.8 billion and $29.3 billion.

Analysts expect revenues of $28.85 billion for the year.

Operating margin percent has been reduced by 100 basis points to be approximately 26 percent. Adjusted operating margin view remains unchanged at approximately 29 percent.

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