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.
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'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
-
The Most Tax-Friendly State for Retirement in 2025: Here It IsRetirement Tax How do you retire ‘tax-free’? This state doesn’t tax retirement income, has a low median property tax bill, and even offers savings on gas. Are you ready for a move?
-
Plan for Higher Health Care Costs in 2026: Projected Medicare Part B and Part D PremiumsIn 2026, Medicare participants will pay more for their health care. Part B costs are expected to rise more than 10%. Here's what you can do.
-
Avoid Medicare's 'Shadow Tax' With This Financial Expert's IRMAA-Busting TipsYou're cruising along in retirement, and then bam: Your Medicare premiums soar because your income crossed the limit. Take a breath. There could be a solution.
-
Grilling Season and ETFs: There's More Than One Way to Cook Up a PortfolioExchange-traded funds come in a multitude of 'flavors' these days, from passive to active to factor-based. Their flexibility is what makes them so delicious.
-
You Don't Want It, But You Should Plan for It Anyway: An Expert Guide to Long-Term CarePlanning for long-term care is crucial to protect your independence, family and financial stability against unexpected health events and rising care costs not covered by standard insurance.
-
Japan Tariffs: 5 Things That Might Get More Expensive for YouPresident Donald Trump's trade agreement with Japan features a 15% reciprocal tariff for all imported products, which could impact the prices of these items when you go shopping.
-
Five Questions to Help Ensure a Happy, Secure RetirementYou need to drill down to what you really want out of retirement. Then you can get down to the business of crafting a financial plan to make it happen.
-
I'm a Financial Adviser: This Is How You Can Save for Big Goals Even if You Feel Like You're Barely Getting ByLearning good financial habits — building an emergency fund, paying down debt, saving consistently — gives you flexibility, options and a path to security.
-
How to Buy an Annuity Online (Without Regret)You should never be rushed into buying an annuity. But now that they can be sold quickly and easily online, you need to be more alert than ever to pushy salesmanship. Here are four signs you're working online with a professional.
-
Dow Dives 542 Points on Soft Jobs Data: Stock Market TodayThe last day of a busy week ends with the first greater-than-1% move in either direction in more than a month.
