Eli Lilly Stock Surges on Demand for Weight-Loss Drugs
Eli Lilly beat earnings expectations for the first quarter and raised its outlook for the year.


Eli Lilly (LLY) stock is rallying more than 5% in Thursday's session after the pharmaceutical giant reported strong first-quarter earnings results and raised its full-year outlook.
In the three months ended March 31, Eli Lilly's revenue increased 26% from the year-ago period to $8.8 billion. Earnings per share (EPS) surged 59.3% to $2.58.
"Lilly's first-quarter performance reflects solid year-over-year revenue growth with strong sales of [weight-loss drugs] Mounjaro and Zepbound," Eli Lilly CEO David A. Ricks said in a statement. "Our progress in addressing some of the world's most significant healthcare challenges has resulted in increased demand for our medicines."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free 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.
The Q1 results were mixed compared with analysts' expectations, which called for revenue of $8.9 billion and EPS of $2.46, according to Yahoo Finance.
Still, Eli Lilly's weaker-than-expected revenue was quickly overlooked after the company increased its full-year outlook. The drugmaker now expects full-year revenue in the range of $42.4 billion to $43.6 billion and earnings to arrive between $13.50 to $14.00 per share. This is up from LLY's previous outlook for revenue in the range of $40.4 billion to $41.6 billion and earnings of $12.20 to $12.70 per share.
"As we continue to make pipeline investments that position us for future growth, we are rapidly expanding manufacturing capacity to make our incretin medicines available to more patients," Ricks said.
Where does Eli Lilly stock stand with analysts?
Analysts were already bullish on the healthcare stock ahead of earnings. According to S&P Global Market Intelligence, the consensus analyst target price for LLY shares is $813.32, representing an upside of just over 5% to current levels. Meanwhile, the consensus recommendation is a Buy.
However, Damien Conover, director of equity strategy at Morningstar, believes Eli Lilly stock was running a little hot ahead of earnings.
"With its 2-star rating, we believe Eli Lilly's stock is overvalued compared with our long-term fair value estimate of $500," Conover said. The $500 estimate represents a downside of more than 35% to current levels.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
New $6,000 'Senior Bonus' Deduction: What It Means for Those Over Age 65
Tax Changes If you’re an older adult, a new bonus tax deduction could provide a valuable tax benefit. Here's how it works.
-
Walmart Plus Members Will Soon Have Their Choice Between Two Streaming Services
Discover which streaming service is coming to the platform.
-
SPACs, SMRs and How to Invest in the Nuclear Insurgency
Big nuclear deployments are in process, but small modular reactors could be a better way to meet rapidly rising electric power demand.
-
10 Ways to Stay Safe From Grandparent Scams and Other Fraud, Courtesy of a Financial Planner
Scams are increasingly hard to detect, and anyone can be fooled, from older people to educated professionals. Here are 10 ways to avoid becoming a victim.
-
This Is How the Student Loan Bubble Is Primed to Pop, From a Student Funding Expert
Fueled by easy money, inflated tuition and high default rates, the student loan bubble mirrors the 2008 subprime mortgage crisis. We could be headed for a potential financial collapse. What can we do?
-
Big Tech Names Rise Above Broad Weakness: Stock Market Today
Some familiar names enjoyed solid rallies on the resolution of outstanding questions, but macro uncertainty hangs over the broader market.
-
Klarna IPO: Should You Buy KLAR Stock?
The Klarna IPO is expected to be one of the biggest offerings of the year, with the buy-now-pay-later firm expected to start trading next week.
-
Alphabet Stock Pops After Google Antitrust Ruling: What to Know
GOOGL stock is soaring Wednesday after a judge ruled that Alphabet does not have to divest its Chrome browser.
-
7 Mistakes to Avoid When You First Start Investing
Investing brings the opportunity to build wealth, but there are plenty of mistakes that can be made. Here are seven common ones and how they can be avoided.
-
A Fidelity Fund Misses Out on Soaring Bank Stocks
The Fidelity International Growth Fund has outperformed over the long term, but its lagging exposure to bank stocks has weighed on more recent returns.