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Eli Lilly and Company (LLY), headquartered in Indiana, is a major pharmaceutical firm with a diverse product lineup and a robust pipeline. Its key pharmaceutical categories include neuroscience, diabetes, oncology, and immunology, and the company commands an impressive market cap of $814.9 billion. The leading drug manufacturer plans to release its Q2 earnings for fiscal 2024 on Thursday, Aug. 8.
Ahead of the event, analysts expect Eli Lilly to report a profit of $2.66 per share, up 26.1% from $2.11 per share in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in each of the last four quarters.
Eli Lilly's EPS rose 59% year over year to $2.58 in the last reported quarter and exceeded the consensus estimate by 2%, thanks to strong sales of Mounjaro and Zepbound.
Moving forward, analysts expect Eli Lilly to report an EPS of $13.71 in fiscal 2024, up 116.9% from $6.32 in fiscal year 2023. Its fiscal 2025 EPS is projected to rise 41.7% annually to $19.42.
LLY’s stock has surged a whopping 87.4% over the past 52 weeks, significantly outperforming the broader S&P 500 Index's ($SPX) 22.7% gains and the S&P 500 Healthcare Sector SPDR’s (XLV) 9.2% returns over the same time frame.
Despite facing challenges such as drug patent expirations and pricing pressures, Eli Lilly has strengthened its portfolio through strategic acquisitions, including ImClone Systems for Erbitux, ICOS Corporation for Cialis, and additional firms like Hypnion, CoLucid Pharmaceuticals, Loxo Oncology, and Dermira. The company also maintains collaboration agreements with Incyte, Boehringer Ingelheim, and Innovent Biologics. Additionally, Eli Lilly is on track to become the first healthcare company to achieve a $1 trillion valuation.
Moreover, driven by increased demand for its medicine and expanding portfolio, the company reported strong first-quarter results, exceeding Wall Street's expectations and raising its full-year guidance. The company now anticipates adjusted earnings of $13.50 to $14.00 per share, up from previous forecasts of $12.20 to $12.70, and expects revenue between $42.4 billion and $43.6 billion, an increase of $2 billion at either end. This optimistic outlook is driven by robust sales of its diabetes drug Mounjaro and new weight loss treatment Zepbound. LLY stock surged nearly 6% following the release of its Q1 result on Apr. 30.
On top of that, Eli Lilly recently agreed to acquire biopharma company Morphic Holding, Inc. (MORF) for $3.2 billion, paying $57 per share. The acquisition, which aims to enhance Eli Lilly's presence in gastroenterology, is expected to close in the third quarter of this year, pending regulatory approval. LLY’s shares jumped up for three consecutive sessions after the announcement on Jul. 8.
The current consensus opinion on Eli Lilly stock is “Strong Buy” overall. Among the 21 analysts covering the stock, 18 recommend a "Strong Buy," one suggests a "Moderate Buy," and two analysts advise a "Hold." Furthermore, the average analyst price target for Eli Lilly is $885.41, indicating a potential upside of 2.2% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
