Eli Lilly CEO Explains The Reasons Behind The $0.16 EPS Beat

Eli Lilly and Co LLY came out with remarkable second-quarter numbers on Thursday. The company reported adjusted EPS of $0.90 beating consensus analysts' estimates of adjusted EPS of $0.74 by $0.16.

John Lecheiter, Eli Lilly CEO, was on CNBC recently to weigh in on the numbers and discuss the reasons behind this beat.

Growth Returning Back

"We said in January when we gave investors our longer-term outlook that we expect now to return to growth after weathering a series of pattern expiration that began back in 2011," Lecheiter began. "So, we are very pleased today, reported growth 1 percent non-GAAP growth was a negative 4 percent, but we were hit by 8 percentage points of downdraft from rate, from strengthening dollar."

He continued, "So, we did see good top-line growth and we are starting to get revenue now from those 3 products that we have launched in the last year. We have got 2 more under FDA review. So, it was a good quarter for Lilly."

Reason For EPS Beat

Lecheiter was asked how company managed to beat analysts' adjusted EPS consensus of $0.74 by $0.16. He replied, "Well, I think, when you look at their model, we don't guide for the quarter, but when you look at what the analysts assumptions were and you look at where we came [up], it was really a lot of little things adding up."

"A little higher on the revenue line, we did better on gross margin, we controlled operating expenses a little bit better than what the analysts had in their model, our tax rate was a little better. So, it all kind of added up to get to that $0.16 beat," Lecheiter explained.