Eli Lilly Puts Up Strong Second Quarter Results, Raises Outlook

Image: Shares of Eli Lilly have been strong the past few years.

By Brian Nelson, CFA

Eli Lilly (LLY) reported better than expected second quarter results on August 8 with both revenue and non-GAAP earnings per share coming in better than the consensus forecast. Revenue jumped 36% in the quarter on a year-over-year basis thanks to strength in Mounjaro, Zepbound, and Verzenio. Volume increased 27%, while the company experienced a 10% increase in realized prices, offset by a 1% headwind with respect to foreign exchange. Non-GAAP net income and earnings per share both increased 86% in what was a blockbuster report from the pharma giant. Management had the following to say about the strong performance:

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. We also recently received approval of Kisunla to help people with Alzheimer’s disease, a moment that was decades in the making. Lilly’s performance and progress in Alzheimer’s, metabolic disorders and many other serious diseases highlight the tenacity, focus and capability of our scientists, clinicians, engineers, customer teams and collaborators. 

Looking to 2024 full-year guidance, Eli Lilly raised its revenue expectations by $3 billion, upped its reported earnings per share guidance $2.05, to the range of $15.10-$15.60, and increased its non-GAAP earnings per share guidance by $2.60 to the range of $16.10-$16.60, above the consensus forecasts. We continue to like Eli Lilly’s product portfolio, particularly Mounjaro and Zepbound, and we include the Health Care Select Sector SPDR Fund (XLV), which includes Eli Lilly as its top weighting, in the Best Ideas Newsletter portfolio.

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