Eli Lilly announced its earnings for the third quarter of 2024, revealing that the company fell short of profit and revenue expectations. As a result, LLY stock experienced a sharp decline of approximately 10% following the announcement.
Earnings Overview
The pharmaceutical giant reported adjusted earnings of $1.18 per share, significantly lower than the anticipated $1.47. Additionally, the revenue for the quarter was $11.44 billion, missing the expected $12.11 billion.
Revised Profit Guidance
Eli Lilly has reduced its full-year adjusted profit guidance, now projecting earnings between $13.02 and $13.52 per share, down from the previous forecast of $16.10 to $16.60. The company also adjusted its revenue expectations, now estimating sales of $45.4 billion to $46 billion, compared to earlier guidance of up to $46.6 billion.
Market Demand and Supply Challenges
Despite increasing demand for Eli Lilly’s injectable weight loss and diabetes medications, such as Zepbound and Mounjaro, supply issues have persisted. The popularity of these drugs has led both Eli Lilly and its competitor, Novo Nordisk, to invest heavily in expanding manufacturing capacity.
Future Outlook
As of now, all doses of Zepbound and Mounjaro are reportedly available in the U.S., easing previous supply shortages. However, the FDA has indicated that patients may still face challenges in filling prescriptions at certain pharmacies. Investors will be closely monitoring how these developments affect LLY stock moving forward.