NYSE$LLY

Eli Lilly & Co · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Eli Lilly reported solid financial results in Q3 2020, driven by volume-based revenue growth from key growth products.

Eli Lilly's Q3 2020 revenue increased by 5% to $5.741 billion, driven by a 9% increase in volume. EPS decreased to $1.33 on a reported basis and increased to $1.54 on a non-GAAP basis. The company continues to advance the development of potential therapeutics for COVID-19.

  • Revenue in Q3 2020 increased 5 percent, driven by volume growth of 9 percent.
  • Key growth products launched since 2014 contributed nearly 9 percentage points of revenue growth and represented approximately 52 percent of total revenue for the quarter.
  • Lilly continues to rapidly advance the development of potential therapeutics for the treatment of COVID-19.
  • Third-quarter 2020 EPS decreased to $1.33 on a reported basis and increased to $1.54 on a non-GAAP basis.

Headline financials

Total Revenue

$5.74B

Previous: $5.48B+4.8%
EPS (adj)

$1.54

Previous: $1.48+4.1%
Volume change

9.0%

No prior period
Price change

-5.0%

No prior period
Gross margin

76.9%

No prior period
Free Cash Flow

$1.21B

Previous: $1.25B-3.6%
Net Income

$1.21B

Previous: $1.25B-3.6%
Operating Income

$1.28B

Previous: $3.41B-62.6%
Gross Profit

$4.41B

Previous: $4.3B+2.6%
Cash & Equivalents

$3.6B

Previous: $7.32B-50.9%
Total Assets

$43.9B

Previous: $37.9B+16.0%
Stock-Based Comp

$71.7M

Previous: $75.5M-5.0%

Revenue & EPS history

Eli Lilly · Revenue · Quarterly

$5.74B

Q3 2020+4.8%vs Q3 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

The company has updated certain elements of its 2020 financial guidance to reflect management's current expectations for underlying business performance. Earnings per share for 2020 are now expected to be in the range of $6.20 to $6.40 on a reported basis and are still expected to be in the range of $7.20 to $7.40 on a non-GAAP basis.

Tailwinds

  • Healthcare activity will continue the positive trends seen in the third quarter of 2020, returning to historical levels
  • New patient prescriptions will continue to improve in the U.S.
  • Pricing headwinds from increased utilization of patient affordability programs and changes in segment mix due to increased U.S. unemployment will continue to be modest
  • Promotional spend will constitute a mix of in-person customer interactions, direct-to-consumer advertising, and investments in digital promotion.

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 Q3 2020

Historical avgQ3 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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