Lilly says it revised its outlook due to the recently announced failure of the cancer treatment Lartruvo in a late-stage clinical trial and a pending acquisition. Lilly announced last month that it would spend about $8 billion in cash to buy Loxo Oncology, as the drugmaker bulks up on cancer treatments that target certain gene abnormalities.
The company now expects 2019 adjusted earnings to range from $5.55 to $5.65 per share, down from a forecast it made in December for between $5.90 and $6 per share. Analysts expect, on average, $5.70 per share, according to FactSet.
In the fourth quarter, the maker of the insulin Humalog posted $1.13 billion in net income, with earnings adjusted for one-time gains and costs of $1.33 per share. Revenue climbed 5 percent to $6.44 billion.
The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of $1.36 per share. Shares of Eli Lilly and Co. slipped $1.93 to $118.50 in pre-market trading. The Indianapolis company's stock has climbed 4 percent since the beginning of the year, while the Standard & Poor's 500 index has increased 9 percent. The stock has climbed 55 percent in the last 12 months.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on LLY at https://www.zacks.com/ap/LLY