What Do Analysts Estimate for Eli Lilly?
What Drove Eli Lilly's 1Q16 Revenue Growth?
Analyst estimates
Eli Lilly (LLY) missed analysts’ estimates for earnings per share (or EPS) but surpassed the revenue estimates in 1Q16. The company reported EPS of $0.83 against estimates of $0.85. The reported revenues were $4.86 billion against estimates of $4.85 billion during 1Q16.
Estimated 2Q16 EPS and revenues are $0.85 and $5.1 billion, respectively. Estimated 3Q16 revenues are $0.93 and $5.2 billion, respectively. Estimated 4Q16 EPS and revenues are and $0.94 and $5.6 billion, respectively.
Annual estimates
The annual estimated EPS for 2016 is $3.54 while the estimate is $3.99 for 2017 and $4.43 for 2018. Analysts have estimated that revenues for 2016 will improve by ~3.8% to $20.7 billion. The gross margin is expected to increase from 75.5% in 2015 to 76.6% in 2016, and is estimated to remain flat at 76.6% in 2017.
Analyst recommendations
Eli Lilly’s stock price has increased by ~9.4% over the last 12 months. Analysts estimate that the stock has the potential to return ~25.6% over the next 12 months. Analysts’ recommendations show 12-month target prices of $95.76 per share as compared to $76.27 per share on April 26, 2016. Also, 63% of analysts recommend a “buy” and 37% of analysts recommend a “hold,” according to Bloomberg’s consensus. Changes in analysts’ estimates and recommendations are based on changing trends in the stock price.
Investors can consider ETFs like the Vanguard Healthcare ETF (VHT), which holds ~2.2% of its total assets in Eli Lilly, ~6.1% of its total assets in Pfizer (PFE), ~3.8% of its total assets in Amgen (AMGN), and ~3.1% of its total assets in AbbVie (ABBV). Investors can also consider the Healthcare Select Sector SPDR ETF (XLV), which holds ~3.0% of its total assets in Eli Lilly, in order to divest company-specific risk.
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