NYSE$LLY

Eli Lilly & Co · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Eli Lilly's financial results reflected variability caused by the COVID-19 pandemic, but underlying business fundamentals remained strong.

Eli Lilly reported a 2% decrease in revenue for Q2 2020, impacted by lower realized prices and the COVID-19 pandemic. Despite this, the company achieved several R&D milestones and raised EPS guidance for the year.

  • Revenue declined 2 percent, with volume growth of 6 percent offset by price decreases and foreign exchange impacts.
  • COVID-19 pandemic negatively impacted Q2 revenue by approximately $500 million due to decreased customer buying and delayed new patient prescription trends.
  • Operating expenses decreased 5 percent, driven by lower marketing expenses.
  • EPS increased to $1.55 on a reported basis and $1.89 on a non-GAAP basis.

Headline financials

Total Revenue

$5.5B

Previous: $5.64B-2.4%
EPS (adj)

$1.89

Previous: $1.50+26.0%
Free Cash Flow

$1.41B

Previous: $1.33B+6.4%
Net Income

$1.41B

Previous: $1.33B+6.4%
Operating Income

$1.44B

Previous: $3.82B-62.3%
Gross Profit

$4.28B

Previous: $4.51B-5.2%
Cash & Equivalents

$2.37B

Previous: $2.29B+3.3%
Total Assets

$42B

Previous: $38.7B+8.5%
Stock-Based Comp

$76.8M

Previous: $79.5M-3.4%

Revenue & EPS history

Eli Lilly · Revenue · Quarterly

$5.5B

Q2 2020-2.4%vs Q2 2019
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 2020 financial guidance, anticipating revenue between $23.7 billion and $24.2 billion and raising EPS guidance to $6.48 to $6.68 on a reported basis and $7.20 to $7.40 on a non-GAAP basis.

Tailwinds

  • Healthcare activity will align more closely with historical levels in the second half of 2020.
  • New-to-brand prescription trends will improve in the U.S.
  • Promotional spend will constitute a mix of in-person customer interactions, direct-to-consumer advertising and investments in digital promotion.
  • Clinical trial enrollment in existing studies, as well as initiation of new clinical trials, will resume in the second half of 2020.
  • Investment in COVID-19 related research, testing and support will continue throughout 2020.

Headwinds

  • Uncertainty surrounds the extent and duration of the impact of the COVID-19 pandemic.
  • Increased utilization of patient affordability programs and changes in segment mix due to higher U.S. unemployment will have a modestly negative impact U.S. pricing.
  • Revenue growth is expected to be partially offset by lower revenue for products that have lost patent exclusivity.
  • Revenue growth is also expected to be partially offset by a mid-single digit net price decline in the U.S.
  • Net price declines in China, Japan and Europe.

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 Q2 2020

Historical avgQ2 2020

+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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