Eli Lilly is set to report its Q1 results on April 30, with expectations of $8.9 billion in sales and $2.46 in adjusted earnings per share. Investors are particularly interested in the performance of the company’s diabetes drug – Mounjaro – and weight-loss drug – Zepbound. Eli Lilly has seen impressive stock growth, outperforming the S&P 500 over the past three years with returns of 64% in 2021, 32% in 2022, and 59% in 2023.
Despite the current uncertain macroeconomic environment, Eli Lilly’s valuation is expected to rise, as it is largely dependent on future pipeline potential rather than its current earnings. In the previous quarter, the company saw a 28% year-over-year growth in revenue to $9.4 billion, driven by market share gains for drugs like Mounjaro, Verzenio, and Jardiance. Adjusted gross margin also expanded by 180 basis points to 82.3%, resulting in a 19% growth in adjusted earnings.
In the upcoming quarter, Eli Lilly is expected to see significant sales growth driven by its new products, with Mounjaro sales projected to rise over 3x year-over-year to $2 billion and Verzenio sales to exceed $1 billion. The company expects sales in 2024 to be between $40.4 billion and $41.6 billion, with earnings in the range of $12.20 and $12.70 per share on an adjusted basis. This marks a substantial increase from its sales of $34.1 billion and adjusted EPS of $6.32 in 2023.
Overall, Eli Lilly appears poised to deliver a strong quarter, driven by its diabetes and obesity drugs. While the stock has already seen significant gains in recent years, it may continue to rise if the company raises its earnings outlook. Comparisons with peers in the industry can provide valuable insights into Eli Lilly’s performance metrics and potential for growth.
Investors looking for market-beating portfolios can consider options from Trefis, which has consistently outperformed the S&P 500 over the past few years. Despite challenges in beating the broader market, Eli Lilly has managed to outperform, showcasing its potential for continued success in the pharmaceutical sector. Stay tuned for Eli Lilly’s Q1 results to see how the company performs and whether it meets or exceeds expectations set by analysts and investors.
