Eli Lilly and Co. (LLY) announced a significant 68% rise in net profit for the second quarter, driven by robust sales of Mounjaro, Zepbound, and Verzenio, and elevated realized prices. Both adjusted earnings per share and revenues beat analysts’ forecasts. Consequently, the company has increased its full-year 2024 guidance.In pre-market trading on the NYSE, LLY shares are experiencing an 11.80% surge, priced at $863.26, up $91.12.“Our impressive financial performance this quarter is owed in large part to Mounjaro, Zepbound, and Verzenio. Additionally, our ongoing global manufacturing expansion is gaining momentum, further supporting the growth of our cancer, neurological, and autoimmune disease treatments,” commented David Ricks, Chair and CEO.For the second quarter, Eli Lilly posted a net income of $2.97 billion, or $3.28 per share, a substantial increase from last year’s $1.76 billion, or $1.95 per share. Excluding certain items, the adjusted earnings for the quarter stood at $3.92 per share, up from $2.11 per share the previous year. This surpassed the $2.60 per share anticipated by analysts polled by Thomson Reuters.The company’s global revenue for the quarter climbed 36% to $11.30 billion, compared to $8.31 billion in the same period last year, outstripping analysts’ estimates of $9.92 billion. This growth was propelled by volume gains from Mounjaro, Verzenio, Zepbound, Jardiance, Taltz, and Humalog, although partially offset by a decline in Trulicity sales.Specifically, the revenue increase comprised 27% volume growth and 10% higher realized prices, tempered slightly by a 1% adverse impact from foreign exchange rates. The volume growth was essentially attributable to Mounjaro, Zepbound, Verzenio, Taltz, and Jardiance, mitigated by the sale of rights for Baqsimi and declining Trulicity sales.New products contributed $4.46 billion to revenue, spearheaded by Mounjaro and Zepbound, while Growth Products revenue rose 3% to $5.05 billion, led by Verzenio, Taltz, and Jardiance, but largely offset by lower Trulicity sales.Breaking down specific products: Trulicity’s global revenue dropped 31% to $1.25 billion, Verzenio’s revenue climbed 44% to $1.33 billion, Zepbound reached $1.24 billion, and Mounjaro attained $3.09 billion. Jardiance revenues grew by 15% to $769.6 million, Taltz revenues increased 17% to $824.7 million, and Humalog revenues rose 43% to $631.6 million.U.S. revenue swelled 42% to $7.84 billion, while international revenue increased 25% to $3.47 billion.The gross margin as a percentage of revenue improved by 250 basis points to 80.8%, primarily due to a favorable product mix and higher realized prices, slightly offset by increased production costs.Looking forward, Eli Lilly projects its fiscal 2024 earnings to range between $15.10 and $15.60 per share, with adjusted earnings between $16.10 and $16.60 per share on revenues spanning $45.4 billion to $46.6 billion. These projections are revised upward from the previously estimated earnings range of $13.05 to $13.55 per share and adjusted earnings from $13.50 to $14.00 per share, on revenues between $42.4 billion and $43.6 billion. Analysts currently anticipate earnings of $13.76 per share on revenues of $43.01 billion.The company attributes its anticipated revenue growth for 2024 largely to the strong performance of Mounjaro, Zepbound, and its non-incretin medicines.The material has been provided by InstaForex Company – www.instaforex.com
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