Shares of Eli Lilly and Co. (LLY, Financial) fell in after-hours trading on Tuesday after the company announced its first-quarter results. The company registered earnings per share of $1.34 on revenue of $5.7 billion, a 9.0% year-over-year increase. The company beat earnings estimates by 20 cents and revenue expectations by $210 million.
During the quarter, revenue in the U.S. increased 8% to $3.2 billion as a result of increased volume for new pharmaceutical products. Revenue outside the U.S. increased 11% to $2.5 billion.
Moreover, the gross margin increased 6% to $4.129 billion. The gross margin as a percentage of revenue was 72.4%, a decrease of 1.8 percentage points from the first quarter of 2017.
"Lilly delivered strong financial results in the first quarter, fueled by revenue growth of new products and continued productivity gains that together resulted in robust earnings growth and an improved financial outlook for the year," Chairman and CEO David A. Ricks said.
He went on to say the company is going through a period of growth due to a strong uptake of new products as well as expanding margins. The company will focus on delivering more innovation for patients and create value for shareholders.
Shares of Caterpillar Inc. (CAT, Financial) tumbled on the heels of the company reporting its financial results for the first quarter. The company posted earnings per share of $2.82 on revenue of $12.9 billion. Revenue grew 31.4% year over year and beat estimates by $970 million. The company also beat earnings estimates by 75 cents.
The company's financial position is strong. The company's Machinery, Energy & Transportation segment genterated $948 million in operating cash flow. Further, it repurchased $500 million worth of common stock. Caterpillar ended the quarter with a cash balance of $7.9 billion.
Looking ahead, the company raised its 2018 earnings outlook by $2 per share to a range of $9.75 to $10.75 per share, up from $7.75 to $8.75 per share. The revised outlook range for adjusted profit is between $10.25 and $11.25 per share.
Disclosure: The author holds no positions in any stocks mentioned.
