Lilly Raises 2020 Outlook; Sees 2021 In Line With View – Quick Facts

Eli Lilly and Co. (LLY) said it raised its outlook for fiscal year 2020. It expects to deliver strong financial and operational performance in 2021, highlighted by volume-based revenue growth, operating margin expansion, pipeline advancements and solid cash flow. The company also plans to return cash to shareholders through an increased dividend and its ongoing share repurchase program, while maintaining strong investment grade ratings.

Josh Smiley, Lilly’s chief financial officer, said “.. Reflecting this growth, we have announced a 15 percent increase in our dividend for 2021. One year after we outlined our high-level outlook through 2025, we are increasingly confident in our ability to deliver top-tier revenue growth and operating margin percent expansion into the mid-to-high 30s during this timeframe.”

For 2020, the company now expects earnings per share to be in the range of $6.28 – $6.48, non-GAAP earnings per share of $7.45 – $7.65 and revenue of $24.2 billion – $24.7 billion. Analysts polled by Thomson Reuters expect the company to report earnings of $7.32 per share and revenues of $23.93 billion for fiscal year 2020. Analysts’ estimates typically exclude special items.

Previously, the company expected earnings per share to be in the range of $6.20 – $6.40, non-GAAP earnings per share of $7.20 – $7.40 and revenue of $23.7 billion – $24.2 billion for fiscal year 2020.

Looking ahead for fiscal year 2021, the company projects earnings per share to be in the range of $7.25 – $7.90, non-GAAP earnings of $7.75 – $8.40 per share, and revenue of $26.5 billion – $28.0 billion. Wall Street currently is looking for fiscal year 2021 earnings of $8.07 per share on annual revenues of $26.47 billion.

The company stated that the 2021 outlook will be driven by volume growth from key growth products, including Trulicity, Taltz, Verzenio, Jardiance, Olumiant, Cyramza, Emgality, Tyvyt, and Retevmo, as well as an estimated $1 billion to $2 billion of revenue from COVID-19 therapies.

The company said that continued pipeline progress in 2021 will include a number of Phase 3 data readouts for important investigational medicines and new indications, the initiation of several new Phase 3 clinical trials, and the possibility of multiple regulatory submissions and approvals.

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