Eli Lilly (LLY) stock is soaring Thursday after the pharmaceutical company crushed top- and bottom-line expectations for its second quarter and raised its full-year outlook.
In the three months ended June 30, Eli Lilly's revenue increased 36% year-over-year to $11.3 billion, driven by demand for its weight-loss drugs, Mounjaro and Zepbound, as well as its breast cancer drug Verzenio. Its earnings per share (EPS) were up nearly 86% from the year-ago period to $3.92.
"Mounjaro, Zepbound, and Verzenio led our strong financial performance in the second quarter as we advanced our manufacturing expansion agenda, and it is equally exciting to see the growth around the world of our medicines for cancer, neurological disorders, and autoimmune diseases," said Eli Lilly CEO David Ricks in a statement.
Eli Lilly's results handily beat analysts' expectations. Wall Street was anticipating revenue of $9.9 billion and earnings of $2.60 per share, according to Yahoo Finance.
As a result of its strong performance in the first half, Eli Lilly raised its full-year outlook. The company now anticipates revenue to arrive between $45.4 billion to $46.6 billion and EPS to range between $16.10 to $16.60. This compares with the company's previous outlook for revenue in the range of $42.4 billion to $43.6 billion and earnings per share of $13.50 to $14.00.
Is Eli Lilly stock a buy, sell or hold?
Eli Lilly has turned in a strong performance on the price charts, surging nearly 84% in the past 12 months. And Wall Street sees further upside for the healthcare stock.
According to S&P Global Market Intelligence, the average analyst target price for LLY stock is $920.45, representing implied upside of roughly 10% to current levels. Additionally, the consensus recommendation is Buy.
Financial services firm Jefferies has an even more optimistic outlook, with a Buy rating and a $1,041 price target. It has also tapped Eli Lilly as a top pick.
In a late-July note, Jefferies analyst Akash Tewari said the large-cap stock is a "must own" on the GLP-1 trade, adding that its drug combinations "could lead to the greatest period of revenue and earnings-per-share growth in pharma history."
Tewari's $1,041 price target sits nearly 25% above where Eli Lilly is currently trading.
