Eli Lilly's stock set to rally after upbeat profit, revenue guidance

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Eli Lilly's stock set to rally after upbeat profit, revenue guidance
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Eli Lilly forecasts 2020 earnings above Wall Street estimates

Shares of Eli Lilly & Co. LLY, +1.09% were indicated up nearly 1% in premarket trading Tuesday, after the drug maker provided an upbeat financial outlook for next year. The company said it expects 2020 net earnings per share of $6.38 to $6.48. Excluding non-recurring items, Lilly expects adjusted EPS of $6.70 to $6.80, compared with the FactSet consensus of $6.62. Revenue is expected to be $23.6 billion to $24.

1 billion, above the FactSet consensus of $23.5 billion. For 2019, Lilly affirmed its adjusted EPS guidance of $5.75 to $5.85, but trimmed its net EPS guidance to $8.57 to $8.67 from $8.59 to $8.69, citing a charge related to the repurchase of debt, asset impairment and restructuring. The stock has rallied 10.6% over the past three months through Monday, while the SPDR Health Care Select Sector ETF XLV, +1.08% has climbed 11.5% and the S&P 500 SPX, +0.71% has advanced 6.2%.

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