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International Markets and Lilly (LLY): A Deep Dive for Investors
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Have you evaluated the performance of Eli Lilly's (LLY - Free Report) international operations for the quarter ending June 2024? Given the extensive global presence of this drugmaker, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.
In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.
Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.
In our recent assessment of LLY's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The company's total revenue for the quarter amounted to $11.3 billion, marking an increase of 36% from the year-ago quarter. We will next turn our attention to dissecting LLY's international revenue to get a clearer picture of how significant its operations are outside its main base.
A Look into LLY's International Revenue Streams
Of the total revenue, $395 million came from China during the last fiscal quarter, accounting for 3.5%. This represented a surprise of -1.9% as analysts had expected the region to contribute $402.64 million to the total revenue. In comparison, the region contributed $376.2 million, or 4.3%, and $399 million, or 4.8%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, Japan contributed $463 million in revenue, making up 4.1% of the total revenue. When compared to the consensus estimate of $433.62 million, this meant a surprise of +6.78%. Looking back, Japan contributed $363.9 million, or 4.2%, in the previous quarter, and $455.6 million, or 5.5%, in the same quarter of the previous year.
Other foreign countries generated $1.21 billion in revenues for the company in the last quarter, constituting 10.7% of the total. This represented a surprise of +46.16% compared to the $825.15 million projected by Wall Street analysts. Comparatively, in the previous quarter, Other foreign countries accounted for $892.9 million (10.2%), and in the year-ago quarter, it contributed $748.5 million (9%) to the total revenue.
Europe accounted for 12.4% of the company's total revenue during the quarter, translating to $1.4 billion. Revenues from this region represented a surprise of -13.41%, with Wall Street analysts collectively expecting $1.62 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe contributed $1.44 billion (16.4%) and $1.18 billion (14.2%) to the total revenue, respectively.
Anticipated Revenues in Overseas Markets
It is projected by analysts on Wall Street that Lilly will post revenues of $11.4 billion for the ongoing fiscal quarter, an increase of 20.1% from the year-ago quarter. The expected contributions from China, Japan, Other foreign countries and Europe to this revenue are 3.4%, 3.6%, 7.1% and 14.8%, translating into $386.96 million, $409.06 million, $813.52 million and $1.69 billion, respectively.
Analysts expect the company to report a total annual revenue of $42.96 billion for the full year, marking an increase of 25.9% compared to last year. The expected revenue contributions from China, Japan, Other foreign countries and Europe are projected to be 3.7% ($1.6 billion), 3.9% ($1.67 billion), 8.1% ($3.46 billion) and 15% ($6.46 billion) of the total revenue, in that order.
The Bottom Line
The dependency of Lilly on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.
In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.
We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.
With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.
Image: Bigstock
International Markets and Lilly (LLY): A Deep Dive for Investors
Have you evaluated the performance of Eli Lilly's (LLY - Free Report) international operations for the quarter ending June 2024? Given the extensive global presence of this drugmaker, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.
In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.
Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.
In our recent assessment of LLY's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The company's total revenue for the quarter amounted to $11.3 billion, marking an increase of 36% from the year-ago quarter. We will next turn our attention to dissecting LLY's international revenue to get a clearer picture of how significant its operations are outside its main base.
A Look into LLY's International Revenue Streams
Of the total revenue, $395 million came from China during the last fiscal quarter, accounting for 3.5%. This represented a surprise of -1.9% as analysts had expected the region to contribute $402.64 million to the total revenue. In comparison, the region contributed $376.2 million, or 4.3%, and $399 million, or 4.8%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, Japan contributed $463 million in revenue, making up 4.1% of the total revenue. When compared to the consensus estimate of $433.62 million, this meant a surprise of +6.78%. Looking back, Japan contributed $363.9 million, or 4.2%, in the previous quarter, and $455.6 million, or 5.5%, in the same quarter of the previous year.
Other foreign countries generated $1.21 billion in revenues for the company in the last quarter, constituting 10.7% of the total. This represented a surprise of +46.16% compared to the $825.15 million projected by Wall Street analysts. Comparatively, in the previous quarter, Other foreign countries accounted for $892.9 million (10.2%), and in the year-ago quarter, it contributed $748.5 million (9%) to the total revenue.
Europe accounted for 12.4% of the company's total revenue during the quarter, translating to $1.4 billion. Revenues from this region represented a surprise of -13.41%, with Wall Street analysts collectively expecting $1.62 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe contributed $1.44 billion (16.4%) and $1.18 billion (14.2%) to the total revenue, respectively.
Anticipated Revenues in Overseas Markets
It is projected by analysts on Wall Street that Lilly will post revenues of $11.4 billion for the ongoing fiscal quarter, an increase of 20.1% from the year-ago quarter. The expected contributions from China, Japan, Other foreign countries and Europe to this revenue are 3.4%, 3.6%, 7.1% and 14.8%, translating into $386.96 million, $409.06 million, $813.52 million and $1.69 billion, respectively.Analysts expect the company to report a total annual revenue of $42.96 billion for the full year, marking an increase of 25.9% compared to last year. The expected revenue contributions from China, Japan, Other foreign countries and Europe are projected to be 3.7% ($1.6 billion), 3.9% ($1.67 billion), 8.1% ($3.46 billion) and 15% ($6.46 billion) of the total revenue, in that order.
The Bottom Line
The dependency of Lilly on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.
We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.
With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.
Lilly currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Exploring Recent Trends in Lilly's Stock Price