Eli Lilly’s Earnings Preview: Strong Growth Ahead for Q1 2025
With a market capitalization of $775.6 billion, Eli Lilly and Company (LLY) stands as a leader in the global biopharmaceutical sector. The company’s key products include diabetes treatments Trulicity and Mounjaro, oncology medications Verzenio and Erbitux, as well as immunology drugs Taltz and Olumiant. Strategic acquisitions, including ImClone Systems, ICOS Corporation, and Loxo Oncology, alongside partnerships with firms like Incyte and Boehringer Ingelheim, have fortified Lilly’s robust pipeline, even amidst patent expirations and pricing pressures.
Earnings Expectations for Q1 2025
The Indianapolis-based company is set to announce its fiscal Q1 2025 earnings report before the market opens on Thursday, May 1. Analysts anticipate that LLY will report an adjusted EPS of $4.44, marking a remarkable 72.1% increase from $2.58 in the same quarter last year. Historically, Lilly has performed well, surpassing Wall Street’s bottom-line estimates in three out of the last four quarters, with only one shortfall. In the Q4 2024 report, the company beat the consensus adjusted EPS estimate by 5.8%.
Growth Forecasts for Fiscal 2025
For the entirety of fiscal 2025, analysts project Eli Lilly will achieve an adjusted EPS of $23.21. This prediction reflects a significant 78.7% increase from $12.99 in fiscal 2024.
Market Performance and Recent Developments
Over the past 52 weeks, LLY has outperformed the broader market, with shares rising 13.4%. In comparison, the S&P 500 Index ($SPX) recorded a 4.5% increase, while the Health Care Select Sector SPDR Fund (XLV) saw a 3.8% decline.
On February 6, Lilly’s stock experienced a 3.4% increase following the announcement of its Q4 2024 adjusted EPS of $5.32 and revenue of $13.5 billion, both figures exceeding expectations. The surge in sales, primarily driven by strong demand for GLP-1 drugs Mounjaro and Zepbound, resulted in a 45% year-over-year revenue increase, while other products in its portfolio also witnessed a solid 20% growth. The management team has advised an optimistic outlook for 2025, projecting sales of up to $61 billion and GAAP EPS potentially reaching $23.55, surpassing analyst estimates.
Analyst Opinions and Price Targets
The consensus rating for LLY shares remains strongly bullish. Of the 24 analysts covering the stock, 20 have issued “Strong Buy” ratings, one has a “Moderate Buy,” and three have designated it as a “Hold.” The average price target among analysts is $1,021.04, indicating a potential upside of 24.7% from current trading levels.
On the date of publication,
Sohini Mondal
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
