Eli Lilly (LLY) stock is higher Thursday after the pharmaceutical company beat profit expectations and matched revenue forecasts for its fourth quarter and issued a better-than-expected outlook for 2025.
In the three months ending December 31, Eli Lilly's revenue increased 44.7% year over year to $13.5 billion, driven by demand for its weight-loss drugs, Mounjaro and Zepbound. Earnings per share (EPS) rose 113.7% from the year-ago period to $5.32.
"2024 was a highly successful year for Lilly," said Eli Lilly CEO David Ricks in a statement. In addition to success with its weight-loss drugs, Ricks cited "major data readouts for tirzepatide in treating chronic disease associated with obesity."
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 also "invested billions more" in its manufacturing capacity and launched Kisunla and Ebglyss. The latter will be "important drivers of our long-term balanced growth outlook," Ricks said. Kisunla is designed to treat early stage Alzheimer's disease, while Ebglyss is for eczema.
The results were mixed compared with analysts' expectations. Wall Street was anticipating revenue of $13.5 billion and earnings of $5.01 per share, according to MarketWatch.
For 2025, Eli Lilly expects to achieve revenue in the range of $58 billion to $61 billion and earnings of $22.50 to $24 per share. The midpoints of these ranges, revenue of $59.5 billion and earnings of $23.25 per share, came in ahead of analysts' expectations of revenue of $58.8 billion and earnings of $22.76 per share.
"We enter 2025 with tremendous momentum and look forward to strong financial performance and several important Phase 3 readouts which, if positive, will further accelerate our long-term growth," Ricks said.
That should support the drug maker's quarterly payout to shareholders as well. Eli Lilly's long track record makes it one of Wall Street's best dividend stock.
Competition in the weight-loss drug category with Novo Nordisk (NVO) and its Ozempic continues to define Eli Lilly's results. A recent Food and Drug Administration clarification of the tirzepatide shortage should help both LLY and NVO.
Is Eli Lilly stock a buy, sell or hold?
LLY tumbled 6.6% on January 14 after management pre-announced fourth-quarter results. Sales for Mounjaro and Zepbound met expectations set in mid-January, and Wall Street sees further upside for the healthcare stock.
According to S&P Global Market Intelligence, the consensus analyst target price for LLY stock is $975.09, representing implied upside of about 14% to current levels. And the consensus recommendation is Buy.
Financial services firm Jefferies has a Buy rating on the large-cap stock with a $994 price target.
"We're bullish on LLY for several reasons," Jefferies analyst Akash Tewari said in a December 19 note, citing Eli Lilly's attractive growth profile in a recessionary environment and the potential for GLP-1s to be among the biggest drug classes of all time.
The analyst also sees near-term upside for both revenue and EPS growth.
Related Content
-
Cord Cutting Could Help You Save Over $10,000 in 10 YearsHow cutting the cord can save you money and how those savings can grow over time.
-
The '8-Year Rule of Social Security' — A Retirement RuleThe '8-Year Rule of Social Security' holds that it's best to be like Ike — Eisenhower, that is. The five-star General knew a thing or two about good timing.
-
Cord Cutting Could Help You Save Over $10,000 in 10 Years
How cutting the cord can save you money and how those savings can grow over time.
-
Should I Buy Stocks or Should I Buy Bonds Right Now?Generally speaking, stocks provide reasonable growth while bonds provide stable income. Each play important roles in diversified portfolios.
-
You Were Planning to Retire This Year: Should You Go Ahead?If the economic climate is making you doubt whether you should retire this year, these three questions will help you make up your mind.
-
Are You Owed Money Thanks to the SSFA? You Might Need to Do Something to Get ItThe Social Security Fairness Act removed restrictions on benefits for people with government pensions. If you're one of them, don't leave money on the table. Here's how you can be proactive in claiming what you're due.
-
From Wills to Wishes: An Expert Guide to Your Estate Planning PlaybookConsider supplementing your traditional legal documents with this essential road map to guide your loved ones through the emotional and logistical details that will follow your loss.
-
Why Investing Abroad Could Pay OffCountries overseas are stimulating their economies, and their stocks are compelling bargains.
-
Are These the Next Stocks to Split?Interactive Brokers' recently split its stock to makes its shares more accessible to investors. Could these high-priced stocks be next?
-
Your Home + Your IRA = Your Long-Term Care SolutionIf you're worried that long-term care costs will drain your retirement savings, consider a personalized retirement plan that could solve your problem.
