Eli Lilly and Co (NYSE:LLY) stock was hit hard today despite reporting an earnings beat for the fourth quarter of 2017.

Earnings per share reported by Eli Lilly and Co for the fourth quarter of the year was $1.14. This is up from its earnings per share of 96 cents from the same time last year. It also came in above Wall Street’s earnings per share estimate of $1.07 for the quarter.

Eli Lilly and Co’s revenue for the fourth quarter of 2017 came in at $6.16 billion. This is an increase over its revenue of $5.76 billion that reported in the fourth quarter of 2016. The company’s revenue also beat out analysts’ estimate of $5.94 billion for the period.

It’s likely that LLY stock is taking a hit today on news of the fee it will suffer from the new tax reform and its changing costs structure. The total for this is $1.90 billion, which caused GAAP losses per share of $1.58 for the quarter.

For the full year of 2017, Eli Lilly and Co reported earnings per share of $4.28 on revenue of $22.87 billion. Wall Street was looking for the pharmaceutical company to report earnings per share of $4.22 on revenue of $22.65 billion for the full year of 2018.

Eli Lilly and Co also announced an update to its outlook for 2018 in its most recent earnings report. It is now expecting earnings per share for the year to range from $4.81 to $4.91. This is an increase from its previous estimate and is due to the recent tax reform. Analysts are estimating earnings per share of $4.68 for LLY in 2018.

LLY stock was down 4% as of Wednesday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.