Alibaba (BABA) revenue up 34%, Eli Lilly (LLY) lowers earnings outlook

Summary

• Alibaba Group’s (NYSE: BABA) June quarter revenue grew by 34% year-over-year, non-GAAP net income increased by 10% year-over-year.
• Eli Lilly and Company’s (NYSE: LLY) revenue increased by 23% in the June quarter. Its net income non-GAAP increased by 29% year-over-year to US$1703.3 million.
• LLY expects its 2021 revenue to be between US$26.8 and US$27.4 billion instead of US$26.6 and US$27.6 billion previously projected.

Alibaba Group Holding Limited (NYSE: BABA) and Eli Lilly and Company (NYSE: LLY) on Tuesday reported strong quarterly earnings growth as the global economy recovers from a covid slump.

However, both the stocks were trading lower in the pre-market session. Alibaba was down 0.65% to US$198.79 at 8:47 am ET, while Eli Lilly was down 2.68% to US$ 240.00 at 9:27 am ET.

Alibaba Group Holding Limited (NYSE: BABA)

Alibaba’s revenue for the first quarter ended June 30, 2021, for the Fiscal Year 2022, grew by 34% YoY to US$31,865 million. However, its net income attributable to ordinary shareholders fell by 5% to US$6,991 million, and non-GAAP net income rose by 10% YoY to US$6,728 million. 

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The China-headquartered company’s income from operation decreased by 11% year-over-year to US$4,778 million. In addition, its Adjusted EBITDA fell by 5% year-over-year to US$7,532 million, primarily due to investment in Taobao Deals, Community Marketplaces, and other projects.

The online and mobile commerce company’s earnings per share diluted were US$ 0.32, non-GAAP EPS diluted ADS was US$2.57, and non-GAAP EPS diluted was US$0.32, a 12% increase year-over-year. Its non-GAAP free cash flow decreased from the previous year to US$3,203 million at the end of the June quarter.

BABA’s annual active consumers reached 1.18 billion at the end of the quarter. As of June 30, 2021, it had 254,702 employees compared to 251,462 as of March 31, 2021. It has a market cap of US$543.88 billion and a P/E ratio of 24.64. The stock closed at US$200.09 on Aug 2, 2021.

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Source: Pixabay.

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Eli Lilly and Company (NYSE: LLY) 

Eli Lilly’s second-quarter revenue increased by 23% to US$6.740 billion in the June quarter. The net income non-GAAP increased by 29% year-over-year to US$1703.3 million, and non-GAAP EPS was US$1.87 compared to US$1.45 in the previous year’s June quarter. Seventeen percent of its revenue was contributed by brands like Trulicity, Taltz, and Verzenio.

Its US revenue increased by 18% to US$3.704 billion, and revenue from outside the US rose by 29% to US$3.036 billion. The net income was US$1.390 billion or EPS of US$1.53, about a 2% decrease from the year-ago period. However, the non-GAAP net income rose by 29% to US$1.703 billion. 

The pharmaceuticals company booked an operating income of US$1.403 billion, 17% up year-over-year. Its non-GAAP operating income increased by 29% to US$1.984 billion. The EPS was US$1.87 compared to US$1.45 in Q2 of 2020. 

LLY expects its 2021 revenue to be between US$26.8 and US$27.4 billion, instead of US$26.6 and US$27.6 billion previously projected in its revised earnings guidance. Its revised expected loss is less than the previously expected loss of US$200 to US$100 million.

Non-GAAP EPS remains unchanged at US$7.80 to US$8.00 and non-GAAP operating margin to be around 30% from the earlier figure of approximately 31%.

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Eli Lilly has a market cap of US$236.50 and a P/E ratio of 36.86. Its current dividend yield is 1.4%, and its annualized dividend is US$3.40.

Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.