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
-
Stock Market Today: Dow Leads as UnitedHealth Stock PopsUnitedHealth was the best Dow Jones stock Monday on reports that Medicare Advantage payments could rise in 2026.
-
Earnings Season: Live Updates and CommentaryFourth-quarter earnings season is getting underway, and Wall Street is keeping a close eye on both results and guidance.
-
Stock Market Today: Dow Leads as UnitedHealth Stock Pops
UnitedHealth was the best Dow Jones stock Monday on reports that Medicare Advantage payments could rise in 2026.
-
How to Organize Your Financial Life (and Paperwork)To simplify the future for yourself and your heirs, put a financial contingency plan in place. The peace of mind you'll get is well worth the effort.
-
Financial Confidence? It's Just Good Planning, Boomers SayBaby Boomers may have hit the jackpot money-wise, but many attribute their wealth to financial planning and professional advice rather than good timing.
-
Will You Be Able to Afford Your Dream Retirement?You might need to save more than you think you do. Here are some expenses that might be larger than you expect, along with ways to ensure you save enough.
-
Three Steps to Simplify Paying Your Taxes in RetirementOnce you retire, how you pay some of your taxes can change. Here's how to get a handle on them so you don't run afoul of the IRS and face penalties.
-
More SECURE 2.0 Retirement Enhancements Kick in This YearSaving for retirement gets a boost with these SECURE 2.0 Act provisions that are starting in 2025.
-
Saving for Your Emergency Fund: As Easy as 1-3-6An emergency fund that can cover six months' worth of expenses is far easier to build if you focus on smaller goals at first.
-
Stock Market Today: Dow Slides 697 Points on Super-Hot Jobs DataWhen the December nonfarm payrolls report hit the tape, there was no question which way stocks would go at Friday's opening bell.
