In This Article:
Eli Lilly (LLY) is scheduled to release its Q1 earnings on May 1, and analysts continue to stay positive, holding onto Buy ratings for the stock. Despite broader market uncertainties, the company’s robust performance in the diabetes and obesity segments, particularly with GLP-1 drugs like Mounjaro and Zepbound, has bolstered analysts’ confidence. Overall, Wall Street expects an EPS (earnings per share) of $4.17, significantly higher than the $2.58 in Q1 2024.
Stay Ahead of the Market:
-
Discover outperforming stocks and invest smarter with Top Smart Score Stocks.
-
Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener.
Notably, GLP-1 drugs help regulate blood sugar, insulin levels, and appetite, mainly treating type 2 diabetes and, more recently, obesity. Eli Lilly currently markets two GLP-1 receptor agonist medications: Tirzepatide, sold under the brand names Mounjaro and Zepbound, and Dulaglutide, sold as Trulicity.
Bank of America Reaffirms Buy Rating
Recently, BofA’s four-star-rated analyst Tim Anderson reiterated a Buy rating on LLY stock, forecasting a growth rate of over 20%.
Anderson’s Buy rating reflects the company’s strong growth prospects, especially in the GLP-1 obesity treatment market, where it is a major player. The analyst points out that Eli Lilly’s success in this area is backed by several advantages that should help it maintain a leading position and market share in the furture.
GLP-1 Boom Lifted Eli Lilly’s Q4 Results
Even in Q4 2024, Mounjaro and Zepbound were key revenue drivers for Eli Lilly’s solid performance. The company reported a 45% year-over-year increase in revenue, reaching $13.53 billion in the fourth quarter. Overall, according to Main Street Data, the Diabetes segment was the largest contributor to Eli Lilly’s revenue in Q4 2024, generating $9.11 billion. This represented a 58.5% year-over-year increase and made up 67.3% of the company’s total revenue for the period.
This impressive growth underscores the increasing demand for Eli Lilly’s GLP-1 drugs, particularly in the diabetes and obesity markets, which are expected to be major drivers of the company’s future success
Geographically, the U.S. remains Eli Lilly’s largest revenue source. However, international markets are expanding rapidly. In Q4 2024, revenue from Europe surged 83% year-over-year, while revenue from the rest of the world grew by 43%.
This strong international growth highlights Eli Lilly’s increasing global reach and reduces its reliance on the U.S. market, positioning the company for more balanced and resilient long-term growth.