Eli Lilly Net Income Rises 22% with Improved Gross Margins, Guides Higher (LLY)

10/21/2009-Eli Lilly (NYSE:LLY) reported Q3 EPS $1.20, topping consensus estimates of $1.02. Revenues in the quarter rose 7% year-over-year to $5.56 billion, and came in ahead of consensus estimates of $5.41 billion. Lilly said gross margin as a percent of total revenue increased by 3.3 percentage points, to 81.1 percent. The company adjusted its full-year 2009 estimates, now projecting EPS of $4.30 - $4.40 (vs. consensus estimates of $4.29).

"Lilly continues to deliver very solid financial results," said John C. Lechleiter Ph.D., Lilly's chairman and chief executive officer. "Our performance in the third quarter once again was driven by volume-based sales growth, improving gross margins and tight control of operating expenses, allowing us to deliver very attractive earnings growth. These results are evidence of the strength of our current operations as we implement our new operating model, streamline our organization and take measures to accelerate the flow of new medicines through our pipeline."

Write to Chip Brian at cbrian@tradethetrend.com

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