NYSE$LLY

Eli Lilly & Co · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Eli Lilly's Q3 2023 financial results were released, highlighting strong sales growth and business development activity.

Eli Lilly reported a strong Q3 2023, with revenue increasing by 37% driven by Mounjaro, Verzenio, and Jardiance, as well as revenue from the sale of rights for the olanzapine portfolio (Zyprexa). However, reported EPS was a loss of $0.06, and non-GAAP EPS was $0.10, both impacted by acquired IPR&D charges.

  • Revenue increased by 37%, driven by Mounjaro, Verzenio, and Jardiance, and the sale of rights for the olanzapine portfolio.
  • New Products contributed $1.44 billion to revenue, led by Mounjaro.
  • Growth Products revenue increased by 12%, led by Verzenio and Jardiance.
  • Pipeline progress included FDA approvals of Omvoh and an expanded indication for Jardiance, and positive results in the mirikizumab Phase 3 VIVID-1 study.

Headline financials

Total Revenue

$9.5B

Previous: $6.94B+36.8%
EPS (adj)

$0.10

Previous: $1.98-94.9%
Volume change

31.0%

No prior period
Price change

6.0%

No prior period
Gross margin

80.4%

No prior period
Capital Expenditures

-$2.38B

No prior period
Free Cash Flow

-$2.43B

Previous: $1.45B-267.7%
Net Income

-$57.4M

Previous: $1.45B-104.0%
Operating Income

$2.3B

Previous: $1.74B+32.5%
Gross Profit

$7.64B

Previous: $5.36B+42.4%
Cash & Equivalents

$2.38B

Previous: $2.62B-9.0%
Total Assets

$57.9B

Previous: $47.5B+22.0%
R&D Expense

$2.41B

No prior period
Stock-Based Comp

$216M

Previous: $85.1M+153.3%

Revenue & EPS history

Eli Lilly · Revenue · Quarterly

$9.5B

Q3 2023+36.8%vs Q3 2022
Beat estimate in 8 of 15 quarters(53%)
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 updated certain elements of its 2023 financial guidance on both a reported and non-GAAP basis. Revenue guidance remains unchanged with the range of $33.4 to $33.9 billion. Based on these changes, EPS guidance decreased to the range of $5.95 to $6.15 on a reported basis and $6.50 to $6.70 on a non-GAAP basis.

Tailwinds

  • Revenue guidance remains unchanged with the range of $33.4 to $33.9 billion.
  • Gross margin as a percent of revenue remains unchanged at approximately 78% on a reported basis and 80% on a non-GAAP basis, but is trending toward the higher end of this estimate.
  • Marketing, selling and administrative expenses guidance remains unchanged with the range of $7.2 to $7.4 billion.
  • Research and development expenses guidance also remains unchanged with the range of $8.9 to $9.1 billion.
  • Other income (expense) guidance remains unchanged on a non-GAAP basis with the range of $0 to $100 million of income.

Headwinds

  • Acquired IPR&D guidance increased by $2.98 billion to $3.18 billion, reflecting charges incurred through Q3 2023.
  • Other income (expense) guidance has been updated to the range of $150 to $50 million of expense on a reported basis.
  • The estimated effective tax rate increased to 19% to 20%, primarily driven by the non-deductible acquired IPR&D charges incurred in Q3 2023.
  • EPS guidance decreased to the range of $5.95 to $6.15 on a reported basis.
  • EPS guidance decreased to the range of $6.50 to $6.70 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 Q3 2023

Historical avgQ3 2023

+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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