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
-
Dow, S&P 500 Slip on December Rate Cut Worries, Nvidia Boosts Nasdaq: Stock Market TodayNvidia became the first company ever to boast a $5 trillion market cap, but it wasn't enough to lift the Dow and the S&P 500.
-
Where You Choose to Stash $100k Now Comes with a Big Opportunity CostThe Fed recently cut rates. Here's where to maximize your savings while rates remain higher.
-
Dow, S&P 500 Slip on December Rate Cut Worries, Nvidia Boosts Nasdaq: Stock Market Today
Nvidia became the first company ever to boast a $5 trillion market cap, but it wasn't enough to lift the Dow and the S&P 500.
-
I'm a CPA: Control These Three Levers to Keep Your Retirement on TrackThink of investing in terms of time, savings and risk. By carefully monitoring all three, you'll keep your retirement plans heading in the right direction.
-
Stocks Hit Fresh Highs Ahead of the Fed As Earnings Pump Optimism: Stock Market TodaySHW and UNH were two of the best Dow Jones stocks Tuesday, thanks to solid earnings reports, and MSFT closed with a $4 trillion market cap.
-
Targa Resources, Take-Two Interactive, Boston Scientific: Why Experts Rate These Stocks at Strong BuyWall Street is highly bullish on these three high-quality stocks.
-
Debunking Three Myths About Defined Outcome ETFs (aka Buffered ETFs)Defined outcome ETFs offer a middle ground between traditional equity and fixed-income investments, helping provide downside protection and upside participation.
-
This Is Why Judge Judy Says Details Are Important in Contracts: This Contract Had HolesA couple's disastrous experience with reclaimed wood flooring led to safety hazards and a lesson in the critical importance of detailed contracts.
-
US-China Trade Hopes Send Stocks to New Highs: Stock Market TodayApple and Microsoft are on track to join Nvidia in the $4 trillion market cap club.
-
A Lesson From the School of Rock (and a Financial Adviser) as the Markets Go Around and AroundIt's hard to hold your nerve during a downturn, but next time the markets take a tumble, remember this quick rock 'n' roll tutorial and aim to stay invested.
