Blockbuster Drugs Drive Eli Lilly’s Strong Q2 Performance

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Published: Aug 8, 2024, 11:10 GMT+00:00

Key Points:

Q2 earnings per share reach $3.92, beating estimates.
Annual revenue forecast boosted by $3 billion.
Mounjaro and Zepbound sales continue to surge.

Eli Lilly Surpasses Expectations, Boosts Revenue Guidance Amid Strong Drug Sales

Eli Lilly’s recent financial performance has significantly exceeded market expectations, driven by robust sales of its diabetes and weight loss drugs. The pharmaceutical giant has subsequently increased its full-year revenue outlook by $3 billion.

Q2 Financial Performance

Eli Lilly reported second-quarter earnings per share (EPS) of $3.92, far surpassing the anticipated $2.60. The company’s revenue reached $11.30 billion, compared to the expected $9.92 billion. This impressive performance is largely attributed to the high demand for its blockbuster drugs, Mounjaro and Zepbound.

Raised Guidance

The company has revised its full-year adjusted earnings guidance to $16.10 to $16.60 per share, up from the previous range of $13.50 to $14. Eli Lilly now anticipates annual revenue between $45.4 billion and $46.6 billion, reflecting a $3 billion increase at both ends of the range. This optimistic outlook is underpinned by the ongoing strong performance of Mounjaro and Zepbound.

Drug Demand and FDA Update

The surge in sales for Mounjaro and Zepbound follows the FDA’s announcement that all doses of these drugs are now available in the U.S., resolving earlier shortages. These incretin drugs, which mimic gut hormones to suppress appetite and regulate blood sugar, have seen demand far outstrip supply. The improved availability is expected to further boost sales.

Daily Eli Lilly and Company

Stock Performance and Market Cap

Eli Lilly’s stock has climbed more than 30% this year, building on a nearly 60% increase in 2023. This surge reflects strong investor confidence in the company’s weight loss and diabetes treatments, despite high prices, inconsistent insurance coverage, and past supply issues. Eli Lilly’s market capitalization now exceeds $730 billion, making it the largest pharmaceutical company in the U.S.

Market Forecast: Bullish

Given the strong financial results, increased revenue guidance, and resolution of supply issues for key drugs, Eli Lilly’s market outlook remains bullish. The continued demand for Mounjaro and Zepbound, along with investor enthusiasm, is likely to drive further stock appreciation in the near term.

About the Author

James Hyerczykauthor

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.