Eli Lilly Q3 2024 Earnings Report
Key Takeaways
Eli Lilly reported a robust Q3 2024, with revenue increasing by 20% and 42% excluding the olanzapine portfolio divestiture. The growth was primarily driven by Mounjaro and Zepbound. EPS increased to $1.07 on a reported basis and $1.18 on a non-GAAP basis, both inclusive of $3.08 of acquired IPR&D charges. The company updated its 2024 revenue guidance to $45.4 to $46.0 billion and EPS guidance to $12.05 to $12.55 (reported) and $13.02 to $13.52 (non-GAAP).
Revenue increased by 20% driven by volume growth from Mounjaro and Zepbound.
Excluding the olanzapine portfolio sale, revenue increased by 42%.
EPS increased to $1.07 reported and $1.18 non-GAAP, including acquired IPR&D charges.
2024 revenue guidance updated to $45.4 to $46.0 billion.
Eli Lilly
Eli Lilly
Eli Lilly Revenue by Segment
Eli Lilly Revenue by Geographic Location
Forward Guidance
Lilly updated its 2024 full-year revenue guidance to between $45.4 billion and $46.0 billion and EPS guidance to the ranges of $12.05 to $12.55 on a reported basis and $13.02 to $13.52 on a non-GAAP basis.
Positive Outlook
- Revenue guidance updated to $45.4 to $46.0 billion.
- The ratio of (Gross Margin - OPEX) / Revenue is still expected to be in the range of 36% to 38% on a reported basis and 37% to 39% on a non-GAAP basis.
- Tax rate guidance is now approximately 17% on both a reported and non-GAAP basis, driven by the impact of non-deductible acquired IPR&D charges in Q3 2024.
- Non-GAAP guidance reflects adjustments presented in the earnings per share reconciliation table.
- Guidance includes acquired IPR&D charges through Q3 2024 of $3.09 billion or $3.33 on a per share basis.
Challenges Ahead
- EPS guidance has been lowered to the ranges of $12.05 to $12.55 on a reported basis.
- EPS guidance has been lowered to the ranges of $13.02 to $13.52 on a non-GAAP basis.
- Guidance now includes acquired IPR&D charges of $3.09 billion, or $3.33 on a per share basis.
- Guidance on a reported basis now includes asset impairment, restructuring and other special charges of $517 million.
- Other income (expense) is now expected to be in a range of ($425) to ($325) million of expense on a reported basis.
Revenue & Expenses
Visualization of income flow from segment revenue to net income