Eli Lilly Cuts Annual Earnings Outlook Below View - Update

(RTTNews) - Eli Lilly and Company (LLY) on Thursday slashed its full-year 2023 earnings outlook.

For the year, the drug maker has revised down its earnings outlook to reflect the acquired in-process research and development or IPR&D charges incurred in the third-quarter.

Excluding items, the drug maker now expects to post income per share of $6.50 to $6.70 against its previous forecast of $9.70 to $9.90.

On average, 11 analysts polled by Thomson Reuters expect the firm to earn $6.72 per share, for the year. Analysts' estimates typically exclude special items.

Net income per share now projected to be in the range of $5.95 to $6.15, lesser than earlier forecast of $9.20 to $9.40.

Acquired IPR&D guidance increased by $2.98 billion to $3.18 billion, reflecting charges incurred through the third-quarter, primarily related to the acquisitions of DICE Therapeutics, Inc., Versanis Bio, Inc., and Emergence Therapeutics AG.

For the third-quarter, the company recognized acquired IPR&D charges of $2.98 billion, compared with $62.4 million in the same period of previous year. The third-quarter 2023 charges primarily related to the acquisitions of DICE Therapeutics, Inc., Versanis Bio, Inc. and Emergence Therapeutics AG.

LLY still expects annual revenue of $33.4 billion to $33.9 billion, in line with analysts' forecast of $33.52 billion.

For the third-quarter, LLY posted a net loss of $57.4 million or $0.06 per share, compared with a profit of $1.451 billion or $1.61 per share, posted for the same period last year.

Excluding items, income stood at $94.8 million or $0.10 per share, lesser than $1.789 billion or $1.98 per share. Analysts, on average, had projected the company to register a loss of $0.15 per share.

Revenue moved down to $9.498 billion from last year's $6.941 billion.