Eli Lilly Stock Soars as Mounjaro and Zepbound Power Earnings Beat and Guidance Boost

Key Takeaways

• Eli Lilly shares jumped 12% before the opening bell after the company reported better-than-expected second-quarter earnings.
• The strong performance was driven by soaring sales of weight-loss drugs Mounjaro and Zepbound.
• Eli Lilly raised its full-year revenue and profit guidance, citing improvements in the supply of its weight-loss drugs.

Eli Lilly (LLY) shares experienced a significant surge in premarket trading on Thursday following the release of the drugmaker’s second-quarter earnings report. The company’s performance exceeded analysts’ estimates, leading to an increase in its full-year revenue and profit guidance.

The maker of weight-loss drugs Mounjaro and Zepbound reported $11.3 billion in revenue for the second quarter, representing a 36% year-over-year increase. This figure was more than $1 billion higher than analysts had anticipated, according to estimates compiled by Visible Alpha. Additionally, Eli Lilly’s profits rose by 68% to $2.97 billion, surpassing expectations.

Mounjaro and Zepbound Sales Soar as Eli Lilly Lifts Guidance

The sales of Mounjaro, one of Eli Lilly’s weight-loss drugs, more than tripled to $3.09 billion during the second quarter. Similarly, Zepbound sales exceeded $1 billion after receiving FDA approval in November 2023.

As a result of the strong performance of its weight-loss drugs, Eli Lilly raised its revenue guidance for 2024 by $3 billion. The company now projects revenue between $45.4 billion and $46.6 billion for the year. Furthermore, Eli Lilly’s full-year earnings per share (EPS) outlook received a boost, with a new range of $15.10 to $15.60, up from the previous range of $13.05 to $13.55.

Eli Lilly attributed the improved guidance to “improved clarity into the timing and pace of the company’s production expansions and planned Mounjaro launches outside the U.S.” The company also expressed increased confidence in its production expectations for the remainder of the year.

As a result of the positive news, Eli Lilly shares surged by 13% to $873.00 an hour before the opening bell on Thursday. This increase brings the stock’s year-to-date gains to nearly 50%.

The strong performance of Eli Lilly reflects the growing demand for weight-loss drugs and the company’s ability to meet this demand. With sales of Mounjaro and Zepbound skyrocketing, Eli Lilly is well-positioned to capitalize on this market trend.

Investors have responded positively to the company’s impressive earnings and guidance, driving the stock price higher. This upward momentum is likely to continue as Eli Lilly expands its production and launches Mounjaro in international markets.

In conclusion, Eli Lilly’s second-quarter earnings report exceeded expectations, driven by the success of its weight-loss drugs Mounjaro and Zepbound. The company’s strong performance has led to an increase in its full-year revenue and profit guidance. With a positive outlook for the remainder of the year, Eli Lilly is poised for continued success in the weight-loss drug market.

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