Lilly down 5%, as 3rd-qtr misses expectations

US pharma major Eli Lilly (NYSE: LLY) this morning reported that third quarter 2020 worldwide revenue was $5.74 billion, an increase of 5% compared with the like quarter of 2019, driven by a 9% increase in volume and a 1 risen due to the favorable impact of foreign exchange rates, partially offset by a 5% decrease due to lower realized prices. However, this was below consensus estimates by $130 million, leading to a 4.2% fall to $135.73 in Lilly’s share price pre-market and the stock was down 5.2% at $134.30 mid-morning.

Net income and earnings per share were $1.21 billion and $1.33, respectively, missing consensus forecasts by $0.28. The decrease in net income and earnings per share in the third quarter of 2020 was primarily driven by lower operating income and, to a lesser extent, higher income tax expense, partially offset by higher other income.

On a non-generally accepted accounting principles (GAAP) basis, in the third quarter net income increased 3% to $1.41 billion, while earnings per share increased 4% to $1.54, missing consensus expectations by $0.17.