NYSE$LLY

Eli Lilly & Co · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Eli Lilly's financial performance in Q1 2021 reflected significant revenue growth driven by key products and COVID-19 antibodies, alongside increased R&D investments.

Eli Lilly's Q1 2021 revenue increased by 16%, driven by volume growth and key products like Trulicity and Verzenio. The company achieved significant progress in R&D, including positive data readouts for tirzepatide and donanemab. EPS decreased on a reported basis but increased on a non-GAAP basis. The 2021 EPS guidance was lowered on a reported basis and adjusted on a non-GAAP basis.

  • Revenue increased by 16% driven by volume growth of 17%.
  • Key growth products contributed 8 percentage points of revenue growth, representing approximately 46% of total revenue.
  • Operating expenses increased by 11%, driven by higher research and development investments, including expenses for COVID-19 therapies.
  • The FDA granted Emergency Use Authorization for bamlanivimab and etesevimab together for the treatment of COVID-19.

Headline financials

Total Revenue

$6.81B

Previous: $5.86B+16.1%
EPS (adj)

$1.87

Previous: $1.75+6.9%
Free Cash Flow

$1.36B

Previous: $1.46B-6.9%
Net Income

$1.36B

Previous: $1.46B-6.9%
Operating Income

$1.45B

Previous: $1.64B-11.5%
Gross Profit

$4.93B

Previous: $4.64B+6.1%
Cash & Equivalents

$3B

Previous: $1.7B+76.7%
Total Assets

$46.8B

Previous: $41.1B+14.0%
Stock-Based Comp

$85.5M

Previous: $71.8M+19.1%

Revenue & EPS history

Eli Lilly · Revenue · Quarterly

$6.81B

Q1 2021+16.1%vs Q1 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Eli Lilly · $2.45B total across 2 segments · Q3 2023

  • Mounjaro
    $1.41B+652.4%
  • Verzenio
    $1.04B+68.4%

Forward guidance

Eli Lilly updated its 2021 financial guidance with revenue expected between $26.6 billion and $27.6 billion. Earnings per share are projected to be in the range of $7.03 to $7.23 on a reported basis and $7.80 to $8.00 on a non-GAAP basis.

Tailwinds

  • Revenue growth is expected to be driven by volume from key growth products, including Trulicity, Taltz, Verzenio, Jardiance, Olumiant, Cyramza, Emgality, Tyvyt and Retevmo, as well as by COVID-19 therapies.
  • Gross margin as a percent of revenue for 2021 is still expected to be approximately 77% on a reported basis and approximately 79% on a non-GAAP basis.
  • The company expects low-to-mid-single digit net price declines in the U.S., driven primarily by increased rebates to maintain broad commercial access and segment mix, partially offset by lower utilization in the 340B segment.
  • Other income (expense) for 2021 is now expected to be income in the range of $150 million to $250 million on a reported basis
  • The 2021 effective tax rate is now expected to be approximately 13 percent on both a reported basis and a non-GAAP basis.

Headwinds

  • Revenue growth is expected to be partially offset by lower revenue for products that have lost patent exclusivity.
  • The company expects mid-single digit net price declines globally in 2021.
  • Outside the U.S., the company expects net price declines in China, Japan, and Europe.
  • Research and development expenses for 2021 are now expected to be in the range of $6.9 billion to $7.1 billion, reflecting additional investments in potential therapies for Alzheimer's disease and approximately $400 million to $500 million of continued investment in COVID-19 therapies.
  • Other income (expense) for 2021 is expense in the range of $100 million to $200 million on a non-GAAP basis.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.1%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+3.1%

Avg return

30 days after

43%

29 / 67 earnings

Positive

+15.9%

Q2 2023

Best reaction

-14.1%

Q2 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.1%+16.2%+29.9%
Q4 2025+10.3%+4.1%-1.3%
Q3 2025+3.2%+11.5%+32.2%
Q2 2025-14.1%-14.3%-2.6%
Q1 2025-11.7%-13.8%-17.9%
Q4 2024+3.3%+2.7%+3.3%
Q3 2024-8.2%-10.8%-12.0%
Q2 2024+15.5%+17.6%+16.9%
Q1 2024+5.4%-0.3%+10.6%
Q4 2023+2.7%+4.8%+10.5%
Q3 2023+2.4%+8.2%+5.3%
Q2 2023+15.9%+16.3%+26.2%
Q1 2023+5.2%+7.4%+13.2%
Q4 2022-1.0%-0.8%-7.0%
Q3 2022-2.0%-1.3%+2.3%
Q2 2022-4.0%-3.4%-4.0%
Q1 2022+2.5%+1.0%+13.5%
Q4 2021-3.4%-4.4%+4.8%
Q3 2021+2.1%+4.0%+6.9%
Q2 2021+6.4%+6.8%+5.3%
Q1 2021-3.6%-2.4%+6.4%
Q4 2020-3.3%-6.3%-2.5%
Q3 2020-7.3%-7.9%+2.2%
Q2 2020-7.1%-4.3%-8.9%
Q1 2020+4.0%+0.4%-3.5%
Q4 2019-0.2%+2.5%-9.9%
Q3 2019-1.8%+2.9%+5.8%
Q2 2019+0.2%+3.4%+3.2%
Q1 2019-1.2%-2.2%-3.1%
Q4 2018-2.4%-2.0%+5.2%
Q3 2018-0.4%+1.9%+5.2%
Q2 2018+8.5%+8.7%+17.9%
Q1 2018+1.2%+3.2%+3.1%
Q4 2017-4.3%-10.0%-10.3%
Q3 2017-2.7%-3.8%-4.0%
Q2 2017-3.4%-1.9%-6.9%
Q1 2017-2.9%-1.6%-6.1%
Q4 2016+3.9%+3.4%+11.0%
Q3 2016-1.0%-3.9%-12.3%
Q2 2016+1.7%+1.1%-4.8%
Q1 2016-1.8%
Q4 2015-3.3%
Q3 2015+1.7%
Q2 2015-1.9%
Q1 2015-1.0%
Q4 2014-0.6%
Q3 2014+2.1%
Q2 2014-0.7%
Q1 2014-1.8%
Q4 2013+0.2%
Q3 2013+0.8%
Q2 2013+3.1%
Q1 2013-3.3%
Q4 2012+2.9%
Q3 2012-1.6%
Q2 2012+3.9%
Q1 2012+2.3%
Q4 2011+1.0%
Q3 2011-1.9%
Q2 2011-0.1%
Q1 2011-0.1%
Q4 2010-1.6%
Q3 2010-0.3%
Q2 2010+2.5%
Q1 2010+0.4%
Q4 2009-0.8%
Q4 2008-0.3%

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