Analyzing the Future Estimates for Eli Lilly and Co.

Eli Lilly and Co.’s 4Q15 Earnings Showed Growth of ~5%

(Continued from Prior Part)

Analysts’ estimates

Eli Lilly and Co. (LLY) has surpassed all estimates for earnings per share (or EPS), and analysts estimate the company to generate EPS of $0.83 on sales of $4.82 billion in 1Q16. Plus, the company’s EPS is estimated at $0.86 for 2Q16, $0.93 for 3Q16, and $0.92 for 4Q16.

Annual estimates

The annual estimated EPS for 2016 is $3.54 while the estimate is $3.98 for 2017 and $4.46 for 2018. Analysts have estimated the revenues for 2016 to improve by ~3.7% to $20.69 billion.

The gross margin is expected to increase from 74.8% in 2015 to 76.9% in 2016 and is projected to reach 76.4% in 2017.

Analyst recommendations

Eli Lilly’s stock price increased by ~12.8% over the last 12 months. Analysts estimate that the stock has the potential to return ~25% over the next 12 months. Analysts’ recommendations show a 12-month targeted price of $98.86 per share as compared to the last price of $79.10 per share as of January 29, 2016.

Also, 67% of the analysts recommend a “buy” and 33% of the 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 the Healthcare Select Sector SPDR ETF (XLV) which holds ~3.0% of its total assets in Eli Lilly, ~7.3% of its total assets in Pfizer (PFE), ~5.4% of its total assets in Merck and Company (MRK), and ~0.8% of its total assets in Zoetis (ZTS). Alternatively, the iShares Core S&P 500 ETF (IVV) holds ~0.5% of its total assets in Eli Lilly.

Continue to Next Part

Browse this series on Market Realist:

• Part 1 - Eli Lilly and Co.’s 4Q15 Earnings: An Overview

• Part 2 - Eli Lilly and Co.’s 4Q15 Changes in Growth Rate

• Part 3 - Eli Lilly and Co.’s 4Q15 Business Segment Performance