Eli Lilly Poised for Strong Earnings Report as Stock Outshines Market
Indianapolis, Indiana-based Eli Lilly and Company (LLY), a prominent player in the pharmaceutical industry, is set to release its fiscal third-quarter earnings for 2024 on Wednesday, Oct. 30, right before the market opens. Known for its popular medications like Trulicity, Verzenio, and Taltz, LLY has a market capitalization of $872.4 billion and produces a diverse range of products focused on neuroscience, endocrine, anti-infectives, cardiovascular health, oncology, and animal health.
Analysts Expect a Significant Jump in Earnings
Ahead of the earnings report, analysts are predicting LLY will announce a profit of $1.98 per share on a diluted basis, a substantial increase from just $0.10 per share in the same quarter last year. The company has a strong track record, having beaten Wall Street’s earnings-per-share (EPS) estimates in its last four quarterly reports.
Forecasts Show Steady Growth
For the full fiscal year, analysts estimate LLY’s EPS will reach $14.13, reflecting a remarkable growth of 123.6% compared to $6.32 in fiscal 2023. Looking ahead to fiscal 2025, EPS is projected to rise by 71% to $24.16.
Over the past 52 weeks, LLY stock has impressively outperformed the S&P 500’s gains of 35.9%, rising 51.2% during this period. Likewise, it has bested the Health Care Select Sector SPDR Fund’s (XLV) increase of 17.9% in the same timeframe.
Strong Product Performance Supports Growth
High demand for key drugs like Mounjaro and Zepbound has generated over $4 billion in sales for LLY. The company has recently received FDA approvals for new drugs, including Omvoh and Jaypirca. Its Alzheimer’s drug, donanemab, along with Ebglyss for treating atopic dermatitis, have also gained regulatory approval. LLY is heavily investing in research and development, including acquisitions and the expansion of manufacturing capabilities to meet this growing demand.
On Aug. 8, shares of LLY climbed more than 9% following the announcement of its Q2 results, where adjusted EPS reached $3.92, outperforming Wall Street’s projection of $2.64. The company reported revenue of $11.3 billion, exceeding anticipated figures of $9.8 billion. Following strong performance, LLY raised its full-year guidance, estimating adjusted EPS to be between $16.10 and $16.60, with projected revenue ranging from $45.4 billion to $46.6 billion.
Analysts Maintain a Strong Buy Outlook
General sentiment among analysts regarding LLY stock remains positive, earning an overall “Strong Buy” rating. Out of 24 analysts monitoring the stock, 21 recommend a “Strong Buy,” one suggests a “Moderate Buy,” and two advise a “Hold.” The average price target for LLY shares stands at $1021.79, indicating a potential upside of 11.3% from current levels.
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On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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