Summary
Eli Lilly and Company (LLY) filed an 8-K on January 7, 2015, to provide updated financial guidance for 2014 and announce financial guidance for the upcoming year, 2015. The company also held a teleconference for analysts and media to discuss these projections. A key aspect of the filing is Lilly's use of non-GAAP financial measures, which they believe offer investors a clearer view of ongoing operations by excluding items such as significant acquisitions/divestitures and amortization of intangibles. These non-GAAP figures are intended to aid in meaningful period-over-period comparisons and trend identification. Investors should note that while Lilly emphasizes the utility of these non-GAAP measures for internal performance evaluation and external understanding of operational trends, these measures are presented as supplemental to, and not a replacement for, standard GAAP financial reporting. The prospective financial guidance for 2015 is also subject to potential adjustments for future events that are difficult to quantify, aligning with the nature of the non-GAAP adjustments.
Key Highlights
- 1Eli Lilly issued updated financial guidance for 2014 and provided initial financial guidance for 2015.
- 2The company held a teleconference on January 7, 2015, to discuss its financial outlook.
- 3Lilly utilizes non-GAAP financial measures (e.g., non-GAAP earnings per share) in its reporting and guidance.
- 4Non-GAAP measures exclude items such as the impact of acquisitions/divestitures and amortization of intangibles.
- 5The company believes non-GAAP measures help investors evaluate ongoing operations and identify trends.
- 6These non-GAAP measures are intended for supplemental analysis and not as a substitute for GAAP measures.
- 7Prospective financial guidance is subject to future adjustments, as quantification of certain future events is not feasible.