On Thursday morning, Eli Lilly (LLY) stock experienced a significant increase following the company's impressive third-quarter earnings report. The pharmaceutical giant announced adjusted earnings of $7.02 per share on total sales of $17.6 billion. This result surpassed the expectations of analysts surveyed by FactSet, who had predicted earnings of $5.89 per share with sales of $16.05 billion.
When comparing these figures to the same period last year, the growth is remarkable. In the previous year, Eli Lilly reported earnings of only $1.18 per share and total sales of $11.44 billion. This year-on-year increase highlights the company's robust performance and successful product offerings.
A significant contributor to Eli Lilly's impressive sales figures this quarter is the diabetes treatment Mounjaro, which generated $6.52 billion in revenue. Additionally, the weight-loss drug Zepbound added another $3.59 billion to the company's sales. Analysts had anticipated sales of $5.45 billion for Mounjaro and nearly $3.5 billion for Zepbound, indicating that Eli Lilly exceeded expectations in both categories.
In light of this strong performance, Eli Lilly has revised its guidance for the fiscal year. The company is now projecting adjusted earnings between $23 and $23.70 per share, with total sales expected to range from $63 billion to $63.5 billion. These projections are notably higher than the Street's expectations of $22.48 earnings per share and $61.74 billion in sales.
In premarket trading on the stock market today, Eli Lilly stock rose by 3.9% to reach $845. Investors may view the short-term high of $864.35 as a potential entry point for a long-term position, especially as the stock continues to trade above its key moving averages. However, it is worth noting that Eli Lilly's IBD Digital Relative Strength Rating is currently at 33, indicating that the stock ranks within the bottom third of all stocks in terms of 12-month performance.
As Eli Lilly continues to report strong earnings and revise its guidance upward, investors are keenly watching the stock's performance. For ongoing updates and insights, follow Allison Gatlin on X/Twitter at @AGatlin_IBD.
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