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The shares of pharmaceutical giant Eli Lilly (LLY) are falling 5% today after the company preannounced lower-than-expected fourth-quarter revenue. The firm estimated that it had generated Q4 sales of about $13.5 billion, versus analysts' average estimate of $13.95 billion.
A scientist in the lab, researching the development of biopharmaceutical monoclonal antibody drugs. Weight-Loss Drug Sales Fail to Meet the Street's Average Estimates Eli Lilly blamed the shortfall on lower-than-anticipated demand for its weight-loss drugs. Indeed, the drug maker estimated that its Mounjaro weight loss treatment had generated revenue of $3.5 billion in Q4, well below analysts' mean estimate of $5.35 billion. As for its other main weight-loss drug, Zepbound, the firm estimated that it had brought in $1.9 billion, versus the mean estimate of $2.08 billion. CEO David Ricks reported that the U.S. weight-loss drug sector had grown more slowly than the company had anticipated, while the company's lower-than-expected inventories at the end of the year had also affected its Q4 results. Strong 2025 Revenue Guidance On a positive note, LLY predicted that it would generate 2025 revenue of $58 billion to $61 billion. The midpoint of that range is $59.5 billion, versus analysts' mean estimate of $58.52 billion. The Recent Price Action of LLY Stock In the last month, LLY stock has fallen 6%, and it has given back 20% in the last three months. In the last 12 months, however, it has gained nearly 16%. While we acknowledge the potential of LLY, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LLY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock Disclosure: None. This article is originally published at Insider Monkey.