Eli Lilly and Company
) is scheduled to report first quarter 2014 results before the
opening bell on Apr 24.
Last quarter, Eli Lilly had posted an earnings surprise of
+1.37%. We expect the company to beat expectations in the first
quarter as well.
Why a Likely Positive Surprise?
Our proven model shows that Eli Lilly is likely to beat earnings
because it has the right combination of two key ingredients.
Positive Zacks ESP:
(Expected Surprise Prediction), which represents the difference
between the Most Accurate estimate and the Zacks Consensus
Estimate, is +4.29%. This is a meaningful and leading indicator
of a likely positive earnings surprise.
Zacks #3 Rank (Strong Buy):
Note that stocks with 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 (Hold) and an
earnings ESP of +4.29% make us confident of an earnings beat on
What is Driving Better-than-Expected Earnings?
Eli Lilly has delivered positive earnings surprises in the last
four quarters with an average beat of 7.35%.
Products like Humulin, Alimta, Cialis, Trajenta and Strattera
should perform well and help offset the negative impact of the
loss of U.S. exclusivity for Evista and Cymbalta. The animal
health division, Elanco, should drive revenues as well.
Cost control and share repurchases should also boost the bottom
Other Stocks to Consider
Eli Lilly is not the only company looking up this earnings
season. We also see likely earnings beats coming from these
companies in the medical sector:
) has an Earnings ESP of +3.34% and holds a Zacks Rank #2 (Buy).
Actavis will report first quarter earnings on Apr 30.
Teva Pharmaceutical Industries Ltd.
) has an Earnings ESP of +0.81% and holds a Zacks Rank #1 (Strong
Buy). Teva will report first quarter earnings on May 1.
Forest Laboratories Inc.
) has an Earnings ESP of +4.55% and holds a Zacks Rank #3. Forest
Labs will report first quarter earnings on Apr 29.
ACTAVIS PLC (ACT): Free Stock Analysis Report
FOREST LABS A (FRX): Free Stock Analysis
LILLY ELI & CO (LLY): Free Stock Analysis
TEVA PHARM ADR (TEVA): Free Stock Analysis
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