Lilly Announces 2020 Financial Guidance, Updates 2019 Guidance
Commenting on the company's cash flow expectations, Smiley added, "Our robust financial performance is expected to generate strong cash flow, which we will continue to deploy thoughtfully. Our capital allocation priorities remain unchanged, starting with funding our promising pipeline and our recently launched medicines, then leveraging business development to access additional external innovation opportunities, followed by returning cash to shareholders through our recently-increased dividend and our ongoing share repurchase program."
"Lilly is in the early phase of an exciting period of prolonged growth for the company, driven by an expanding portfolio of new medicines focused on diabetes, oncology, immunology, and neuroscience," said
2019 Financial Guidance
The company has updated certain elements of its 2019 financial guidance. On a reported basis, earnings per share for 2019 are now expected to be in the range of
2019 Expectations |
% Change |
|
Earnings per share (reported) |
$8.57 to $8.67 |
NM |
Discontinued operations |
(3.93) |
|
Earnings per share from continuing operations (reported) |
$4.64 to $4.74 |
52% to 55% |
Asset impairment, restructuring and other special charges |
.58 |
|
Amortization of intangible assets |
.18 |
|
Lartruvo charges |
.14 |
|
Acquired in-process research and development |
.21 |
|
Gain on sale of China antibiotics business |
(.27) |
|
Net charge related to repurchase of debt |
.21 |
|
Impact of reduced shares outstanding for non-GAAP reporting |
.07 |
|
Earnings per share (non-GAAP) |
$5.75 to $5.85 |
6% to 8% |
NM – not meaningful; Numbers may not add due to rounding
|
The following table summarizes the company's 2019 financial guidance:
2019 Guidance |
|||
Prior |
Updated |
||
Revenue |
$22.0 to $22.5 billion |
Unchanged |
|
Gross Margin % of Revenue (reported) |
Approx. 79% |
Unchanged |
|
Gross Margin % of Revenue (non-GAAP) |
Approx. 80% |
Unchanged |
|
Marketing, Selling & Administrative |
$5.9 to $6.1 billion |
Unchanged |
|
Research & Development |
$5.5 to $5.7 billion |
Unchanged |
|
Other Income/(Expense) (reported) |
$(100) to $50 million |
$(35) to $115 million |
|
Other Income/(Expense) (non-GAAP) |
$(100) to $50 million |
Unchanged |
|
Tax Rate (reported) |
13.0% to 14.0% |
Unchanged |
|
Tax Rate (non-GAAP) |
12.0% to 13.0% |
Unchanged |
|
Earnings per share (reported) |
$8.59 to $8.69 |
$8.57 to $8.67 |
|
Earnings per share (non-GAAP) |
$5.75 to $5.85 |
Unchanged |
|
Non-GAAP guidance reflects adjustments presented in the earnings per share table above. |
2020 Financial Guidance
The company today issued its 2020 financial guidance. Earnings per share for 2020 are expected to be in the range of
2020 Expectations |
|||
Earnings per share (reported) |
$6.38 to $6.48 |
||
Amortization of intangible assets |
.32 |
||
Earnings per share (non-GAAP) |
$6.70 to $6.80 |
||
Numbers may not add due to rounding |
|||
The company anticipates 2020 revenue between
Gross margin as a percent of revenue rate is expected to be approximately 79 percent on a reported basis, and approximately 81 percent on a non-GAAP basis.
Marketing, selling and administrative expenses are expected to be in the range of
Operating margin, defined as operating income as a percent of revenue, is expected to be 31 percent on a non-GAAP basis in 2020.
Other income (expense) is expected to be expense in the range of
The 2020 effective tax rate is expected to be approximately 15 percent on both a reported basis and on a non-GAAP basis.
The following table summarizes the company's 2020 financial guidance.
2020 Guidance |
|||
Revenue |
$23.6 to $24.1 billion |
||
Gross Margin % of Revenue (reported) |
Approx. 79% |
||
Gross Margin % of Revenue (non-GAAP) |
Approx. 81% |
||
Marketing, Selling & Administrative |
$6.1 to $6.3 billion |
||
Research & Development |
$5.6 to $5.9 billion |
||
Other Income/(Expense) |
$(250) to $(100) million |
||
Tax Rate |
Approx. 15% |
||
Earnings per share (reported) |
$6.38 to $6.48 |
||
Earnings per share (non-GAAP) |
$6.70 to $6.80 |
||
Operating Income % of Revenue (non-GAAP) |
31% |
||
Non-GAAP guidance reflects adjustments presented in the earnings per share table above. |
Webcast of Conference Call
As previously announced, investors and the general public can access a live webcast of the 2020 financial guidance conference call through a link on Lilly's website at www.lilly.com. The conference call will begin at
About Eli Lilly and Company
Lilly is a global healthcare leader that unites caring with discovery to create medicines that make life better for people around the world. We were founded more than a century ago by a man committed to creating high-quality medicines that meet real needs, and today we remain true to that mission in all our work. Across the globe, Lilly employees work to discover and bring life-changing medicines to those who need them, improve the understanding and management of disease, and give back to communities through philanthropy and volunteerism. F-LLY
This press release contains management's current intentions and expectations for the future, all of which are forward- looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words "estimate", "project", "intend", "expect", "believe", "target", "anticipate" and similar expressions are intended to identify forward-looking statements. Actual results may differ materially due to various factors. There are significant risks and uncertainties in pharmaceutical research and development. There can be no guarantees that pipeline products will receive the necessary clinical and manufacturing regulatory approvals or that they will prove to be commercially successful. The company's results may also be affected by such factors as the timing of anticipated regulatory approvals and launches of new products; market uptake of recently launched products; competitive developments affecting current products and our pipeline; the expiration of intellectual property protection for certain of the company's products; the company's ability to protect and enforce patents and other intellectual property; the impact of actions of governmental and private payers affecting the pricing of, reimbursement for, and access to pharmaceuticals; regulatory compliance problems or government investigations; regulatory actions regarding currently marketed products; unexpected safety or efficacy concerns associated with the company's products; issues with product supply stemming from manufacturing difficulties or disruptions; regulatory changes or other developments; changes in patent law or regulations related to data-package exclusivity; litigation involving past, current or future products; unauthorized disclosure, misappropriation, or compromise of trade secrets or other confidential data stored in the company's information systems, networks and facilities, or those of third parties with which the company shares its data; changes in tax law and regulations, including the impact of U.S. tax reform legislation enacted in
Baqsimi™ (glucagon, Lilly)
Basaglar® (insulin glargine injection, Lilly)
Cyramza® (ramucirumab, Lilly)
Emgality® (galcanezumab-gnlm, Lilly)
Forteo® (teriparatide of recombinant DNA origin injection, Lilly)
Jardiance® (empagliflozin, Boehringer Ingelheim)
Olumiant® (baricitinib, Lilly)
REYVOW™ (lasmiditan, Lilly)
Taltz® (ixekizumab, Lilly)
Trulicity® (dulaglutide, Lilly)
Verzenio® (abemaciclib, Lilly)
Refer to: |
Mark Taylor; mark.taylor@lilly.com; (317) 276-5795 (Media) |
Kevin Hern; hern_kevin_r@lilly.com; (317) 277-1838 (Investors) |
View original content to download multimedia:http://www.prnewswire.com/news-releases/lilly-announces-2020-financial-guidance-updates-2019-guidance-300975822.html
SOURCE