Eli Lilly raises FY24 EPS view to $16.10-$16.60 from $13.50-$14.00

Consensus $13.76. Raises FY24 revenue view to $45.4B-$46.6B from $42.4B-$43.6B, consensus $43.01B. Sees FY24 gross margin 37%-39%. Sees FY24 tax rate 15%. The company said, “2024 full-year revenue guidance increased by $3.0 billion to the range of $45.4 billion to $46.6 billion, primarily driven by the strong performance of Mounjaro and Zepbound, as well as the company’s non-incretin medicines. Additionally, the company has improved clarity into the timing and pace of the company’s production expansions and planned Mounjaro launches outside the U.S. In Q2 2024, the company achieved a number of supply-related milestones and has increased confidence regarding production expectations for the rest of the year. The ratio of (Gross Margin – OPEX) / Revenue, where OPEX is defined as the sum of research and development expenses and marketing, selling and administrative expenses, is now expected to be in the range of 36% to 38% on a reported basis and 37% to 39% on a non-GAAP basis. Both ratios reflect the $3.0 billion increase in revenue guidance. Guidance on a reported basis now includes asset impairment, restructuring and other special charges of $435 million to reflect the Q2 2024 charge, which was associated with anticipated litigation payments. Other income (expense) guidance is now expected to be a range of (525) to (425) million of expense on a reported basis and (400) to (300) million of expense on a non-GAAP basis, both reflecting lower expected net interest expense. The reported guidance also reflects net losses on investments in equity securities through Q2 2024. Tax rate guidance is now expected to be approximately 15% on both a reported and non-GAAP basis, driven by changes in the company’s forecasted mix of earnings in higher tax jurisdictions. Based on these changes, EPS guidance increased to the ranges of $15.10 to $15.60 on a reported basis and $16.10 to $16.60 on a non-GAAP basis. The company’s 2024 financial guidance reflects adjustments shown in the reconciliation table below.”