Drugmaker Eli Lilly and Co. (LLY) on Tuesday reported a profit for the third quarter that more than doubled from last year, reflecting higher revenues and fewer charges compared to last year. Both revenue and adjusted earnings per share beat analysts’ expectations. In addition, the company raised its financial outlook for fiscal 2018.
Eli Lilly’s income for the third quarter rose to $1.15 billion or $1.12 per share from $555.6 million or $0.53 per share in the year-ago period.
The latest quarter’s results include asset impairment, restructuring and other special charges of $83.3 million, compared to $406.5 million in the previous-year quarter.
Excluding items, adjusted earnings were $1.39 per share, compared to $1.05 per share in the year-ago period. On average, analysts polled by Thomson Reuters expected the company to report earnings of $1.35 per share for the quarter. Analysts’ estimates typically exclude special items.
Revenue grew 7 percent to $6.06 billion from $5.66 billion last year, driven primarily by increased demand for new medicines. Wall Street expected revenues of $6.05 billion for the quarter.
The increase in revenue reflects a 12 percent increase due to volume, partially offset by a 4 percent decrease due to lower realized prices and a 1 percent decrease due to the unfavorable impact of foreign exchange rates.
Pharmaceutical revenue in the quarter grew 8 percent. New medicines, including Trulicity, Taltz, Basaglar, Cyramza, Jardiance, Verzenio, Lartruvo and Olumiant, represented 35 percent of pharma revenue and drove strong volume growth.
Revenue in the U.S. increased 11 percent, to $3.45 billion, while revenue outside the U.S. rose 2 percent to $2.62 billion.
Looking ahead to fiscal 2018, Eli Lilly now forecasts reported earnings in a range of $3.04 to $3.09 per share and adjusted earnings of $5.55 to $5.60 per share.
The company now anticipates full-year revenue between $24.3 billion and $24.5 billion. The increase in the low end of the revenue range from prior guidance is due to strong performance across the pharmaceutical portfolio, particularly in diabetes.
Earlier, the company forecast full-year adjusted earnings of $5.40 to $5.50 per share and revenues between $24.0 billion and $24.5 billion.
The Street expects earnings of $5.48 per share for the year on revenues of $24.4 billion.
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