Eli Lilly (LLY.US) stock fell nearly 4% after the drugmaker posted disappointing quarterly figures. Company earned $1.87 per share which came well below analysts’ expectations of $2.14 a share. Lilly reported revenue of $6.81 billion in the first quarter, short of the average market estimate of $7.02 billion. Company recorded a 7% fall in quarterly profit, due to higher spending on research and development of treatments including Covid-19 drugs. Also Lilly took various asset impairment charges during the quarter, as well as incurring costs related to its acquisition of Prevail Therapeutics. The company also lowered its full-year earnings forecast due to lower demand for its COVID-19 antibody therapies with the U.S. vaccine rollout in full swing. Drugmaker now expects adjusted full-year earnings of $7.80 to $8.00 per share, from its prior forecast of $7.75 to $8.40 per share.
Eli Lilly (LLY.US) stock launched today’s session with a bearish price gap and is currently testing lower limit of the ascending channel. Should break lower occur, then downward move may be extended to the support at 173.83. On the other hand, if buyers will manage to halt declines here, then another upward move towards major resistance at $197.28 is possible. Source: xStation5
