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Eli Lilly and Company (LLY) is a global leader in healthcare innovation, specializing in discovering, developing, and delivering life-changing medicines to address some of the world's most pressing medical needs. With a market cap of $759.4 billion, Eli Lilly operates across diverse therapeutic areas, providing cutting-edge solutions in oncology, diabetes, immunology, and neuroscience. The Indianapolis, Indiana-based company is set to release its Q4 earnings on Tuesday, Feb. 4.

Ahead of the event, analysts expect Eli Lilly to report a profit of $5.43 per share, up 118.1% from $2.49 per share reported in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing on another occasion. Its EPS of $1.18 for the last reported quarter missed the consensus estimates by 22.4%. Eli Lilly's Q3 miss was driven by inventory decreases at wholesalers, impacting Zepbound and Mounjaro sales despite strong year-over-year growth.

Analysts expect Eli Lilly’s EPS to climb 107.9% to $13.14 in fiscal 2024, up from $6.32 in 2023. In fiscal 2025, EPS is projected to increase by 82.9% annually to $24.03.

Shares of Eli Lilly have gained 26.9% over the past 52 weeks, outperforming both the S&P 500 Index's ($SPX) 21.8% rise and the Health Care Select Sector SPDR Fund’s (XLV) slight decline over the same period.

Eli Lilly's growth is fueled by high demand for its key drugs, Mounjaro (for type 2 diabetes) and Zepbound (for weight loss), which generate impressive sales. FDA approvals for key drugs like Omvoh, Jaypirca, donanemab, and Ebglyss, supported by strategic R&D investments and expanded manufacturing, also contribute to the company's growth.

Despite a diversified portfolio and a promising pipeline, shares of the drug manufacturer dropped 6.3% after its Q3 earnings result on Oct. 30, missing Wall Street’s expectations. Its revenue of $11.4 billion missed the consensus estimates of $12.1 billion. While its key drugs saw strong sales, inventory reductions in the U.S. impacted overall results. Despite this setback, analysts highlight the growth potential in Lilly's diabetes, obesity, and Alzheimer’s treatments.

However, analysts’ consensus opinion on LLY stock is bullish, with a “Strong Buy” rating overall. Out of 25 analysts covering the stock, 20 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and four give a “Hold.” LLY’s average analyst price target is $1,005.42, indicating a potential upside of 25.7% from the current levels.

On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart

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