Eli Lilly and Company
) will be reporting third quarter 2013 results on Oct 23, before
the opening bell. Last quarter, the company posted a positive
surprise of 13.73%. We expect the trend to continue in the third
quarter of 2013.
Factors at Play for Q3
Eli Lilly has delivered positive earnings surprises in three
of the last four quarters with an average beat of 6.61%. The
strong performance of key products like Cymbalta, Cialis, Forteo
and Humulin among others could help make up for the loss of
revenues resulting from the genericization of Zyprexa. Another
factor that could lead to an earnings beat is the company's cost
Our proven model shows that Eli Lilly is likely to beat
earnings because it has the right combination of two key
Positive Zacks ESP:
(Expected Surprise Prediction), which represents the difference
between the Most Accurate estimate and the Zacks Consensus
Estimate, is +0.95%. This is a meaningful and leading indicator
of a likely positive earnings surprise for the shares.
Zacks Rank #3 (Hold):
Note that stocks with a Zacks Rank #1, 2 and 3 have a
significantly higher chance of beating earnings estimates. We
caution against stocks with Zacks Ranks #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revision momentum.
The combination of Eli Lilly's Zacks Rank #3 and an ESP of
+0.95% makes us confident of an earnings beat on Oct 23.
Other Stocks to Consider
Eli Lilly is not the only company looking up this earnings
season. We also see likely earnings beat coming from these
) has Earnings ESP of +7.14% and holds a Zacks Rank #3. Forest
Labs will be reporting second quarter earnings on Oct 22 before
the market opens.
BioMarin Pharmaceutical, Inc.
) has Earnings ESP of +10.71% and holds a Zacks Rank #3. BioMarin
will be reporting third quarter earnings on Oct 24 after market
) has Earnings ESP of +6.10% and holds a Zacks Rank #3. Shire
will be reporting third quarter earnings on Oct 24 before the
BIOMARIN PHARMA (BMRN): Free Stock Analysis
FOREST LABS A (FRX): Free Stock Analysis
LILLY ELI & CO (LLY): Free Stock Analysis
SHIRE PLC-ADR (SHPG): Free Stock Analysis
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