Eli Lilly and Co Beats Earnings Estimates, Mattel, Inc. Sees Sales Plunge

Eli Lilly

As of this writing, shares of Eli Lilly were little changed at $72.10 per share, while shares of Mattel were down 4.83% to $25.60 per share

Mattel and Eli Lilly released their latest earnings reports before opening bell this morning. Mattel posted adjusted earnings of 52 cents per share on $1.99 billion in sales, a 6% decline. Analysts had been expecting earnings of 93 cents per share on $2.16 billion in revenue.

Eli Lilly posted adjusted earnings of 75 cents per share, a 1% increase, on $5.12 billion in revenue, a 12% decline driven by currency exchange rates. Analysts had been expecting earnings of 73 cents per share on $5.19 billion in revenue.

Key metrics from Eli Lilly’s earnings report

Eli Lilly’s reported earnings for the fourth quarter plunged 40%, falling to 40 cents per share. Profits fell from $727.5 million in the same quarter a year ago to $428.5 million in 2014’s fourth quarter. The drug maker noted negative impacts from the expiration of patents for Evista and Cymbalta in the U.S.

For the full year, revenue tumbled 15% to $19.6 billion. Earnings were $2.23 per share or $2.78 per share on a non-GAAP basis.

Eli Lilly also confirmed its 2015 guidance of earnings between $2.40 and $2.50 per share on a reported basis and $3.10 and $3.20 per share in a non-GAAP basis. The company revised its revenue guidance to between $19.5 billion and $20 billion as management expects the Novartis Animal Health acquisition to add significant revenue. The company completed the acquisition on Jan. 1.

Key metrics from Mattel’s earnings report

Mattel’s net earnings were 44 cents per share, which includes a 5 cent per share negative impact from the integration of MEGA Brands and a 3 cent per share negative impact related to taxes. In the same quarter a year ago, reported earnings were $1.07 per share.

Worldwide net sales fell 6%, including negative impacts from the strengthening U.S. dollar. Mattel’s net profit fell 59% to $149.9 million do for the quarter as sales of the toy maker’s Barbie brand toys plunged 12%. Sales of Fisher-Price branded toys fell 11%, while sales of the Hot Wheels brand grew 5% and sales of the American Girl brand fell 4% year over year. Gross sales from North America slipped 2%, while International sales fell 5%. Mattel recorded a 410 basis point decline in gross margin, partially due to the MEGA Brands acquisition.

For the full year, Mattel posted a 7% decline in worldwide net sales and net earnings of $1.45 per share, compared to $2.58 per share in the previous year.. Excluding a negative impact of 16 cents from the MEGA brands acquisition and a positive impact of 13 cents per share from taxes, earnings were $1.42 per share.

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About the Author

Michelle Jones
Michelle Jones was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Michelle has been with ValueWalk since 2012 and is now our editor-in-chief. Email her at Mjones@valuewalk.com.