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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
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.
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
-
Quiz: Do You Really Know How Social Security Benefits Are Taxed?Quiz Social Security benefits often come with confusing IRS tax rules that can trip up financially savvy retirees and near-retirees.
-
Are You Ready for 65? The Medicare Initial Enrollment Period QuizQuiz Turning 65 soon? Test your basic knowledge of Medicare's Initial Enrollment Period (IEP) rules in our quick quiz.
-
3 Ways to Stretch the 2026 Social Security COLA For Your BudgetThree steps retirees can take to stretch the Social Security COLA to fit their budgets.
-
Giving Tuesday Is Just the Start: An Expert Guide to Keeping Your Charitable Giving Momentum Going All YearInstead of treating charity like a year-end rush for tax breaks, consider using smart tools like DAFs and recurring grants for maximum impact all the year.
-
Uber Takes Aim at the Bottom Lines of Billboard Personal Injury LawyersUber has filed lawsuits and proposed a ballot initiative, in California, to curb settlements it claims are falsely inflated by some personal injury lawyers.
-
Dow Slides 427 Points to Open December: Stock Market TodayThe final month of 2025 begins on a negative note after stocks ended November with a startling rally.
-
A Financial Adviser's Health Journey Shows How the 'Pink Tax' Costs WomenFact: Women pay significantly more for health care over their lifetimes. But there are some things we can do to protect our health and our financial security.
-
I'm a Cross-Border Financial Adviser: 5 Things I Wish Americans Knew About Taxes Before Moving to PortugalMoving to Portugal might not be the clean financial break you expect due to U.S. tax obligations, foreign investment risks, lower investment yields and more.
-
What to Make of a Hot IPO MarketThis year's crop of initial public offerings could be even dicier than usual because of a skew toward tech and crypto.
-
How to Position Your Portfolio for Lower Interest RatesThe Federal Reserve is far from done with its rate-cutting regime. This is how investors can prepare.
-
Show of Hands: Who Hates Taxes? The Best Time to Plan for Them Is Right NowBy creating a tax plan, you can keep more of what you've earned and give less to Uncle Sam. Here's how you can follow the rules and pay only your fair share.
