Eli Lilly shares fall the most in two weeks on Tuesday, first-quarter revenue miss estimates, full-year revenue forecast revised down

Yesterday Eli Lilly and Company (LLY) issued revised down revenue forecast for the entire 2019, as the drug maker expects prices in the United States to drop further and generic competition for drugs to increase.

Eli Lilly shares closed lower for a second consecutive trading session in New York on Tuesday. It has also been the steepest daily loss since April 17th. The stock went down 2.14% ($2.56) to $117.04, after touching an intraday low at $114.96, or a price level not seen since April 22nd ($113.65).

Shares of Eli Lilly and Company have risen 1.14% so far in 2019 compared with a 17.51% gain for the benchmark index, S&P 500 (SPX).

In 2018, Eli Lilly’s stock went up 37.01%, thus, it outperformed the S&P 500, which registered a 6.24% loss.

Eli Lilly’s first-quarter revenue, reported at $5.09 billion, fell short of market consensus of $5.13 billion.

The company’s top-selling diabetes drug, Trulicity, generated $879.7 million in revenue during the first quarter, but missed the median analyst estimate of $952 million.

Net income attributable to shareholders went up to $4.24 billion ($4.31 per share) during the quarter ended on March 31st due to a $3.7 billion gain from Eli Lilly’s spin-off of animal health unit, Elanco.

Meanwhile, earnings per share, which exclude special items, were reported at $1.33 during the first quarter, thus, exceeding the median analyst estimate of $1.31 per share.

The US drug manufacturer said it had revised down its full-year 2019 revenue forecast to a range of $22.0 billion to $22.5 billion from a previously expected range of $25.1 billion to $25.6 billion. The new projection compares with $22.17 billion in revenue, expected by analysts on average.

On the other hand, Eli Lilly’s full-year adjusted earnings forecast has been revised up to a range of $5.60-$5.70 per share from a previously expected range of $5.55-$5.65 per share.

According to CNN Money, the 13 analysts, offering 12-month forecasts regarding Eli Lilly and Co’s stock price, have a median target of $127.00, with a high estimate of $145.00 and a low estimate of $93.00. The median estimate represents an 8.51% upside compared to the closing price of $117.04 on April 30th.

The same media also reported that 10 out of 17 surveyed investment analysts had rated Eli Lilly and Co’s stock as “Hold”, while 7 – as “Buy”.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for Eli Lilly and Company (LLY) are presented as follows:

Central Pivot Point – $117.81
R1 – $121.98
R2 – $124.08
R3 – $128.25
R4 – $132.41

S1 – $115.71
S2 – $111.54
S3 – $109.44
S4 – $107.33

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