Lilly Lifts FY23 Earnings View Above Market On Updated Tax Rate - Update

Drug maker Eli Lilly And Co. (LLY), while reporting higher earnings and weak revenues in its fourth quarter, on Thursday lifted its fiscal 2023 earnings view above market estimates, as it has updated the tax rate guidance.

In pre-market activity on the NYSE, Lilly shares were losing around 3 percent to trade at $334.10.

For 2023, Eli Lilly now expects earnings in the range of $7.90 to $8.10 on a reported basis and $8.35 to $8.55 on an adjusted basis.

The company previously expected earnings per share to be in the range of $7.65 to $7.85 on a reported basis and $8.10 to $8.30 on an adjusted basis.

On average, 19 analysts polled by Thomson Reuters expect earnings of $8.28 per share for the year. Analysts' estimates typically exclude special items.

The company has updated its tax rate. The previous tax rate guidance of approximately 16% for 2023 assumed deferral or repeal of the 2017 Tax Act provision that requires capitalization of research and development expenses. The company now has updated the tax rate guidance to be around 13% due to the uncertainty as to whether any change to this provision will be enacted in 2023.

Further, Lilly continues to expect 2023 revenue between $30.3 billion and $30.8 billion, driven by volume increases from key growth products. Analysts expect revenues of $30.55 billion for the year.

David Ricks, Lilly's chair and CEO, said, "Over the course of this critical year, we hope to launch as many as four new medicines for challenging diseases, while advancing our next generation of molecules currently in Phase 3."

In its fourth quarter, the company's bottom line came in at $1.94 billion, or $2.14 per share, up from $1.73 billion, or $1.90 per share last year.

Adjusted earnings were $1.89 billion or $2.09 per share for the period, compared to $1.97 billion or $2.17 per share a year ago.

The company's revenue for the quarter fell 8.8 percent to $7.30 billion from $8.00 billion last year.

Analysts expected earnings of $1.78 per share on revenues of $7.33 billion for the quarter.

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.

For comments and feedback contact: editorial@rttnews.com

Business News

Looking to Invest in the Best Biotech Stocks? Subscribe to RTT Biotech Investor.
Follow RTT