Eli Lilly’s outlook is positive despite slower growth

Article Excerpt

Eli Lilly’s shares fell recently after the company reported its latest results—and that included slowing sales of its anti-obesity drug Zepbound and related diabetes drug Mounjaro. Still, overall sales and profits for Lilly were up strongly. ELI LILLY & CO., $753.41, is still a buy. The company (New York symbol LLY; TSINetwork Rating: Above Average) (www.lilly.com; Shares o/s: 949.3 million; Market cap: $715.2 billion; Yield: 0.7%) reports that in the three months ended September 30, 2024, its revenue rose 20.4%, to $11.44 billion from $9.50 billion a year earlier. Per-share earnings in the quarter jumped, to $1.18 from $0.10. The increase came from overall sales of higher-profit-margin products. Lilly’s stock dropped despite the improved sales and profits. That’s because sales growth for Mounjaro and Zepbound slowed, althought sales continue to rise. Meanwhile, Lilly’s outlook remains positive. Notably, the slowing sales of Mounjaro and Zepbound were offset by 17% growth in revenue from its other drugs. At the same time, despite any short-term slowdown in sales of…