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Dec 31, 2022

Eli Lilly Q4 2022 Earnings Report

Eli Lilly reported a decrease in revenue but an increase in EPS on a reported basis for Q4 2022. The company highlighted pipeline advancements and key growth products driving revenue.

Key Takeaways

Eli Lilly's Q4 2022 results showed a 9% decrease in revenue, but excluding COVID-19 antibodies, revenue increased by 5%. EPS increased by 13% on a reported basis. The company is focusing on launching new medicines and advancing its pipeline.

Q4 2022 revenue decreased by 9%, but excluding COVID-19 antibodies, revenue increased by 5%.

Key growth products grew by 21% and represented 70% of revenue in Q4 2022.

Q4 2022 EPS increased 13% to $2.14 on a reported basis.

2023 EPS guidance updated to be in the range of $7.90 to $8.10 on a reported basis and $8.35 to $8.55 on a non-GAAP basis.

Total Revenue
$7.3B
Previous year: $8B
-8.7%
EPS
$2.09
Previous year: $2.49
-16.1%
Gross Profit
$5.75B
Previous year: $5.95B
-3.3%
Cash and Equivalents
$2.07B
Previous year: $3.82B
-45.9%
Total Assets
$49.5B
Previous year: $48.8B
+1.4%

Eli Lilly

Eli Lilly

Eli Lilly Revenue by Segment

Eli Lilly Revenue by Geographic Location

Forward Guidance

Lilly updated its 2023 financial guidance, increasing EPS guidance due to changes in the tax rate.

Positive Outlook

  • Revenue guidance unchanged at $30.3 to $30.8 billion
  • Gross Margin % of Revenue (reported) remains approximately 77%
  • Gross Margin % of Revenue (non-GAAP) remains approximately 79%
  • Marketing, Selling & Administrative expenses unchanged at $6.9 to $7.1 billion
  • Research & Development expenses unchanged at $8.2 to $8.4 billion

Challenges Ahead

  • Other Income/(Expense) unchanged at $(200) to $(100) million
  • Tax Rate updated to approximately 13% (previously approximately 16%)
  • Earnings per Share (reported) updated to $7.90 to $8.10 (previously $7.65 to $7.85)
  • Earnings per Share (non-GAAP) updated to $8.35 to $8.55 (previously $8.10 to $8.30)
  • 2023 financial guidance does not include any acquired IPR&D and development milestone charges

Revenue & Expenses

Visualization of income flow from segment revenue to net income