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Indianapolis, Indiana-based Eli Lilly and Company (LLY) is a leading pharmaceutical company that sells Trulicity, Verzenio, and Taltz drugs. The company discovers, develops, and markets human pharmaceuticals. With a market cap of $872.4 billion, LLY’s products include neuroscience, endocrine, anti-infectives, cardiovascular agents, oncology, and animal health products. The pharmaceutical giant is expected to announce its fiscal third-quarter earnings for 2024 before the market opens on Wednesday, Oct. 30.
Ahead of the event, analysts expect LLY to report a profit of $1.98 per share on a diluted basis, up significantly from $0.10 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect LLY to report EPS of $14.13, up 123.6% from $6.32 in fiscal 2023. Its EPS is expected to rise 71% year over year to $24.16 in fiscal 2025.
LLY stock has outperformed the S&P 500’s ($SPX) 35.9% gains over the past 52 weeks, with shares up 51.2% during this period. Similarly, it outperformed the Health Care Select Sector SPDR Fund’s (XLV) 17.9% gains over the same time frame.
LLY's success is driven by high demand for key drugs like Mounjaro and Zepbound, generating over $4 billion in sales. The company has received approvals for new drugs like Omvoh and Jaypirca. LLY's Alzheimer's drug, donanemab, and atopic dermatitis medication, Ebglyss, have also been approved by the FDA. LLY has been solidly investing in research and development, with acquisitions and new facilities to meet growing demand and enhance manufacturing capabilities.
On Aug. 8, LLY shares closed up more than 9% after reporting its Q2 results. Its adjusted EPS of $3.92 exceeded Wall Street expectations of $2.64. The company’s revenue was $11.3 billion, topping Wall Street forecasts of $9.8 billion. LLY raised its full-year guidance and expects adjusted EPS to be between $16.10 and $16.60, and expects revenue to be between $45.4 billion and $46.6 billion.
Analysts’ consensus opinion on LLY stock is bullish, with a “Strong Buy” rating overall. Out of 24 analysts covering the stock, 21 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and two give a “Hold.” LLY’s average analyst price target is $1021.79, indicating a potential upside of 11.3% from the current levels.
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 is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
