Updated – Barclays Upgrades Eli Lilly Shares As Earnings Surpass Expectations

Off the back of the strong earnings delivered on Wednesday, Eli Lilly get a big raise in price target from Barclays, pushing forecasts up to $913 (from prior mark of $810). Despite the firm having already added 5.95% to its' share price yesterday, the acceleration of expectations from Barclays reflects almost a 15% upside in LLY shares.

In Yesterdays News

Eli Lilly and Co (NYSE: LLY), the prominent pharmaceutical company, is expected to report an impressive surge in first-quarter earnings, largely driven by its latest weight-loss treatments, Zepbound and Mounjaro. The company's share price leaped a remarkable 81.66% over the last year. In the pre-market, Eli Lily's share price has already sky rocketed 7.8% as the the firm published its financial outcomes on Tuesday.

• Q1 revenue up by 24%
• Q1 EPS of $2,48 up by 66%
• Revenue guidance for FY 2024 raised by $2bn
• EPS guidance raise to $13,05-$13,55

“Lilly's first quarter performance reflects solid year-over-year revenue growth with strong sales of Mounjaro and Zepbound,”

David A. Ricks, Lilly's chair and CEO

Forecasters predicted that Eli Lilly's revenue will hit $8.93 billion, a sizable leap from the previous year's figures. This heightened revenue is further anticipated to drive net income significantly upward, reaching a projected $2.11 billion, or $2.49 per share, which shows a stark contrast to the $1.34 billion or $1.49 per share reported in the same period last year.

The robust earnings are attributed to the success of Eli Lilly's weight-loss drugs, which have taken the market by storm. In the fourth quarter, Zepbound and Mounjaro bolstered the company's revenue with contributions of $2.21 billion and $175.8 million respectively. These drugs' profitability indicates not just their efficacy but also their market acceptance and burgeoning demand among consumers seeking medical weight management solutions.

Looking forward, Eli Lilly is optimistic about its sales trajectory, projecting a rise of over 20% in 2024. This follows a remarkable 28% increase in fourth-quarter revenue, suggesting a strong and sustained growth pattern bolstered by the company's strategic focus on weight-loss medications.

The demand for these medications, and specifically Zepbound, which received FDA approval in November, is forecasted to be so robust that there could be supply constraints. Eli Lilly has indicated that demand is likely to outpace supply in the coming year, underscoring the pivotal position of these drugs in its portfolio.

In alignment with the positive forecast and market performance, Eli Lilly's stock price has reflected the company's successful trajectory, having soared over 81% in the past year. On Monday, shares closed at a striking $737.20, painting a bullish picture for the company's investors.

Eli Lilly appears to be at the forefront of a burgeoning market segment with its weight-loss drugs reshaping expectations and driving earnings growth. As the company prepares to take the call later today, there will be many eager listeners.