Eli Lilly Q4 2023 Earnings Report
Key Takeaways
Eli Lilly reported a robust 28% increase in Q4 2023 revenue, driven by new products and growth products. EPS increased by 13% on a reported basis and 19% on a non-GAAP basis. The company issued 2024 guidance with revenue expected to be in the range of $40.4 billion to $41.6 billion.
Q4 2023 revenue increased by 28%, driven by new products like Mounjaro and Zepbound.
New Products revenue grew by $2.19 billion to $2.49 billion in Q4 2023.
Q4 2023 EPS increased 13% to $2.42 on a reported basis and increased 19% to $2.49 on a non-GAAP basis.
2024 revenue guidance is in the range of $40.4 billion to $41.6 billion, with EPS between $11.80 and $12.30 (reported) and $12.20 and $12.70 (non-GAAP).
Eli Lilly
Eli Lilly
Eli Lilly Revenue by Segment
Eli Lilly Revenue by Geographic Location
Forward Guidance
The company anticipates 2024 revenue to be in the range of $40.4 billion to $41.6 billion. EPS for 2024 is expected to be in the range of $11.80 to $12.30 on a reported basis and $12.20 to $12.70 on a non-GAAP basis.
Positive Outlook
- Revenue growth is expected to be largely driven by New Products.
- Marketing, selling and administrative expenses are expected to grow at a pace slower than revenue growth.
- Gross Margin - OPEX/Revenue (reported) is expected to be 30% to 32%.
- Gross Margin - OPEX/Revenue (non-GAAP) is expected to be 31% to 33%.
- The company continues to execute on its manufacturing expansion agenda.
Challenges Ahead
- An expected continuation of the decline in Trulicity sales.
- Demand for incretins is likely to outpace supply in 2024.
- Other income (expense) is expected to be expense in the range of $400 million to $500 million, primarily driven by higher interest expense.
- The 2024 effective tax rate is expected to be approximately 14%.
- The company is not including any potential or pending acquired IPR&D charges in its initial 2024 guidance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income