Eli Lilly stock reversed higher Thursday on its upbeat outlook despite lighter-than-expected fourth-quarter sales of its well-known weight-loss and diabetes drugs.
During the fourth quarter, obesity treatment Zepbound brought in $1.91 billion in sales, while type 2 diabetes drug Mounjaro generated $3.53 billion. That lined up with Lilly's preannouncement last month, but missed more bullish analyst calls for $1.99 billion and $3.63 billion, respectively.
The company noted continued strong demand for the Mounjaro, but the drug faced "lower realized prices due to favorable changes in Q4 2023 to estimates for rebates and discounts."
Eli Lilly stock jumped 3.4%, ending the regular session at 870.37. Shares are consolidating with a buy point at 972.53, according to MarketSurge. On Wednesday, Lilly stock closed above its 200-day line for the first time in nearly three months.
Mounjaro, Zepbound Sales Rocket
Across all of its products, Eli Lilly's sales surged 45% to $13.53 billion. That just missed forecasts for $13.55 billion, according to FactSet. Adjusted earnings more than doubled, rocketing 114% to $5.32 per share. Earnings handily beat expectations for $5.06 a share.
Despite coming up short, Mounjaro sales rocketed 124% while Zepbound put up a triple-digit gain after launching in the year-earlier period.
But sales of a similar drug, Trulicity, tumbled 26% to $1.25 billion and missed forecasts for $1.34 billion. Trulicity treats type 2 diabetes. Like Mounjaro and Zepbound, it mimics the GLP-1 hormone to help improve feelings of satiety and blood sugar markers.
For 2025, Lilly expects $58 billion to $61 billion in sales and adjusted earnings of $22.50 to $24 per share. The midpoints of Eli Lilly's outlook topped analysts' forecast. The Street projected $58.77 billion in sales and $22.76 earnings per share.
The guidance includes expectations for continued "erosion of Trulicity volumes" and similar growth from last year for its big-name drugs Mounjaro and Zepbound.
