Lilly reiterates 2006/07 guidance, disappoints

USA-based Eli Lilly disappointed analysts with its sales and earnings guidance for 2006 and 2007. The firm, which is the world's 12th largest pharmaceutical firm by sales, reconfirmed its previous forecasts, which are below analysts consensus estimates, due to its $2.1 billion all-cash purchase of ICOS Corp (Marketletter October 23).

Lilly reiterated its previous statement that 2006 sales would see growth at approximately the low end of 7% to 9% and reiterated its earnings guidance of $3.10 to $3.20 per share on an adjusted basis, or $2.74 to $2.84 on a reported basis, excluding any other future, unusual items.

In 2007, the Indianapolis-headquartered firm anticipates sales growth in the high single or low double digits and earnings of $3.25 to $3.35 per share on a reported basis, assuming the successful 2006 completion of the ICOS acquisition. From 2008, which is when Lilly will record the positive impact of the Washington, USA-based drugmaker, to 2010, EPS growth is estimated in the high single to low double digits, the firm noted.