On Thursday, August 4, before the market’s opening, Eli Lilly (NYSE:LLY) will release the company’s earnings report for the second quarter.
The consensus estimate for earnings per share is $1.71 (a decrease of 8.6% year over year), and the consensus estimate for revenue is $6.85 billion (a growth of 1.6% year over year).
During the past two years, LLY has successfully beat estimates for earnings per share (EPS) 38% of the time and revenue estimates 63% of the time.
For the past three months, the consensus estimate for EPS has been revised four times upward and six times downward. There have been six upward changes to the estimates of revenue and one downward revision.
Late in April, shares of Eli Lilly (LLY) increased after the company posted results for the first quarter that were better than expected and boosted its sales outlook for the fiscal year 2022.
The contract that LLY had with the United States government to supply 600,000 doses of its monoclonal antibody COVID-19 treatment bebtelovimab was beneficial to the company’s results in the first quarter. The sale of the company’s COVID antibodies resulted in worldwide revenue of $1.47 billion for the business.
As a result of the company’s announcement that it will modify its purchase agreement with the United States government to include an additional 150 thousand doses of bebtelovimab at the cost of approximately $275 million, the contribution to revenue from COVID antibodies is anticipated to be significantly lower during this quarter.
It is anticipated that sales of Eli Lilly’s (LLY) major medications, such as Trulicity, Taltz, Verzenio, Jardiance, Olumiant, and Emgality, will fuel a year-over-year gain in revenue during the second quarter.
According to the majority opinion of investors polled by Zacks, sales of Trulicity, Taltz, Verzenio, Jardiance, Olumiant, and Emgality are expected to total $1.86 billion, $696 million, $562 million, $473 million, $257 million, and $201 million, respectively.
According to the research conducted by Zacks, “While volumes are expected to have increased for most drugs, lower realized prices due to changes to estimates for rebates and discounts as well as updated NRDL price reductions in China are likely to have continued to hurt sales of most drugs, mainly Taltz.”
The long-awaited and much-anticipated approval of the diabetic treatment Mounjaro by the Food and Drug Administration (FDA) of the United States in May was a momentous occasion for LLY in the second quarter. It is anticipated that the medication would pose a direct challenge to the treatment offered by Novo Nordisk (NVO), known as Wegovy. In July, Morgan Stanley predicted that NVO and LLY would be the market leaders in the obesity sector, which it anticipates will have global sales of $54 billion.
According to the analysis conducted by Zacks, “We expect management to discuss the initial sales numbers of (Mounjaro) on the second-quarter conference call.”
The stock of Eli Lilly (LLY) has had the most robust performance relative to its peers. In the previous month, it reached multiple 52-week highs.
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