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.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
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.
Related Content
-
Three Ways to Set Up Your Finances for Success This YearIf you want to set yourself up for success, you need to approach your wealth from all sides, from lifestyle expenses to investments.
-
Retirement Savings on Track? See How Much You Should Have in Your Mid-50s and Early 60sJPMorgan’s guide can help older Gen Xers determine whether they have saved enough for a retirement pegged to their income level.
-
Stock Market Today: Stocks Skid Into Another Risk-Off TurnThe promise of the AI revolution can't overcome flickering hopes for a "Fed put."
-
How to Survive Market Mayhem2025 is turning out to be a turbulent year for the market, but don't panic. Here are four ways investors can ride out the storm.
-
Alternative Investments Under Trump: What You Need to KnowAs access to alternative markets opens up, retail investors looking to enhance their long-term financial outcomes have more opportunities to carefully consider.
-
Beware of TV/Billboard Personal Injury Law Firms: Here's WhyIf you or someone you know is tempted to hire a so-called settlement mill to handle a personal injury case, here are some reasons to reconsider.
-
How Small Businesses Can Clear the Economic Hurdles AheadShifting rules on taxes, trade and regulation are creating uncertainty for SMBs. Owners can overcome that by focusing on efficiency, flexibility and investment.
-
Stock Market Today: Dow Adds 353 Points Despite Soft Retail SalesInvestors and traders shake off another set of shaky economic numbers and send 10 of 11 sectors higher on Monday.
-
CoreWeave IPO: Should You Buy CRWV Stock?The CoreWeave IPO will mark the biggest public offering of the year, with the AI cloud company expected to start trading on the Nasdaq in late March.
-
Nvidia Stock's Been Growing for Years. Just Look At Its 100,000% ReturnNvidia shareholders have had to stomach intense volatility over the years, but they have come out on top thanks to the AI chipmaker's bellwether status.
