By Eli Lilly (ticker: LLY) reported strong earnings for the third quarter, with earnings per share at 10 cents and revenue of $9.5 billion. This performance exceeded analysts’ expectations, as they had predicted a loss of 18 cents per share on revenue just under $9 billion, according to FactSet.
However, despite the positive results, the company delivered disappointing news regarding its full-year earnings guidance. In August, Lilly had raised its outlook to a range of $9.70 to $9.90 per share. Yet, it has now revised its guidance significantly downward to a range of $6.50 to $6.70 per share.
The reason behind this downward revision is predominantly related to research and development charges resulting from Lilly’s recent acquisition of DICE Therapeutics, Versanis Bio, and Emergence Therapeutics in the third quarter.
As a consequence of the reduced guidance, shares in Lilly experienced a decline of 1.7% in premarket trading on Thursday. Prior to earnings, the stock had seen a 2% increase due to strong performance from Novo Nordisk (NVO), a peer company.
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