Eli Lilly on Tuesday lowered guidance for its December quarter amid slower-than-expected sales for its Zepbound and Mounjaro weight loss drugs. Eli Lilly stock tumbled on the news.
For the December quarter, the Indianapolis-based company said it expects revenue of about $13.5 billion, below consensus estimates of $13.93 billion.
The revenue total includes $3.5 billion in sales of Mounjaro, below estimates of $4.4 billion, and $1.9 billion in sales of Zepbound, below expectations of $2.14 billion.
Eli Lilly said it expects 2025 revenue of $58 billion to $61 billion vs. the consensus estimate of $58.5 billion.
The company reports full fourth-quarter and 2024 financial results on Feb. 6.
On the stock market today, Eli Lilly stock fell more than 7% to 741.22.
"While we could see the miss weigh on the stock in the near-term, we note that the company guidance for 2025 is above consensus at mid-point and implies 32% year-over-year growth rate," said Srikripa Devarakonda, analyst at Truist Securities, in a report.
The race to develop new weight-loss drugs has been heating up.
LLY Stock Technical Ratings
Earlier this week, Eli Lilly said it would spend $2.5 billion to acquire a cancer drug from privately held Scorpion Therapeutics.
In the September quarter, Eli Lilly earned an adjusted $1.18 per share, widely missing expectations for $1.45, according to FactSet. Sales climbed 20% to $11.44 billion but lagged forecasts for $12.09 billion.
LLY stock holds a Relative Strength Rating of 41 out of a best-possible 99, IBD Digital shows. Eli Lilly stock also has a Composite Rating of 82, a measure of fundamental and technical metrics.
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