Eli Lilly Increases 2018 Guidance -- Earnings Review

By FeaturesDow Jones Newswires

Eli Lilly and Co. reported its fourth-quarter results Wednesday before the market opened. Here's what you need to know.

LOSS: The company reported a loss of $1.66 billion, or $1.58 a share, compared with a profit of $771.8 million, or 73 cents a share, in the same period a year earlier. The company recorded about $1 billion in charges related to cost-cutting efforts such as the launch of its voluntary early retirement program. On an adjusted basis, the Indianapolis-based firm earned $1.21 billion, or $1.14 a share, up 19% from $1.01 billion, or 95 cents a share. Analysts polled by Thomson Reuters were predicting adjusted earnings of $1.07 a share.

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TAX REFORM: Eli Lilly said it had a $1.94 billion expense as a result of the tax code changes. The company said Wednesday it "may utilize more than $9 billion in cash" from operations across the world because of changes in rules regarding profits held overseas.

REVENUE: Revenue climbed 6.9% to $6.16 billion. The increase was helped by revenue outside the U.S., which rose more than domestic revenue. Eli Lilly gets more of its revenue domestically.

SPECIFIC DRUGS: Revenue from Strattera, a drug that helps young people with ADHD, fell 60% in the fourth quarter, while revenue from Forteo, a drug for osteoporosis, rose 21%. Revenue from Humalog, Eli Lilly's largest product by revenue, fell 4.6% to $782.2 million. Of the company's newer products, revenue from Lartruvo, which treats soft-tissue sarcoma, rose 396%. Revenue from Basaglar, a drug for diabetes, rose 289%. Of Eli Lilly's newer products, Trulicity, which helps control blood-sugar levels, brought in the most money at $649 million, up 93% from the same quarter a year before.

GUIDANCE: The company boosted some of its guidance because of the recent tax law and expects adjusted earnings per share in 2018 to be between $4.81 and $4.91, up between 12% and 15% from 2017. Revenue is still expected to be between $23 billion and $23.5 billion, Eli Lilly said.

Shares, which have gained 12% over the past year, rose 0.6% in premarket trading to $86.60.

Write to Allison Prang at allison.prang@wsj.com

(END) Dow Jones Newswires

January 31, 2018 07:31 ET (12:31 GMT)

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