Eli Lilly and Company celebrated a historic high water mark with their inspiring financial Q2 2023 results. In the meantime, they announced a net income of $5.66 billion, or $6.29 per share. This figure represents an astounding 68% increase over this time last year. During that earnings period, the company registered a net income of $2.97 billion, or $3.28 per share. The pharmaceutical behemoth racked up adjusted earnings of $6.31 a share, excluding one-off items, beating analysts’ forecasts.
Eli Lilly’s profits have skyrocketed on the strength of that company’s blockbuster weight loss and diabetes drugs. Mounjaro and Zepbound are out in front, as you might expect, in driving this remarkable growth. As the firm announced the U.S. sales—up 38% to $10.81 billion for the quarter—CEO Dave Lewis pointed out Tuesday that’s a lot of sales. Before its approval, analysts had estimated Mounjaro would bring in a staggering $4.49 billion in sales. At the same time, they projected for Zepbound to generate $3.06 billion.
In light of these positive results, Eli Lilly raised its fiscal 2025 sales guidance to a range of $60 billion to $62 billion, an increase from its previous outlook of $58 billion to $61 billion. As a result, the company raised its earnings guidance ranges for fiscal 2025. Now, it projects to make at least $21.75—and up to $23 a share—beating the old guidance of $20.78 to $22.28 per share.
Yet even with this largely good news, Eli Lilly’s stock fell more than 11% in premarket trading on Thursday. This drop raised questions among investors as the stock’s performance did not seem to align with the company’s strong earnings report.
As David Ricks, the CEO of Eli Lilly, said about the industry’s future during a recent earnings call. He noted that tirzepatide, which encompasses both Mounjaro and Zepbound, is likely to become “the best-selling drug in the industry in its third year in the market.”
“I feel good about the value of the company. Investors have to decide what they think. But Lilly is rolling, and you look at the beat and raise, strong growth on the back half, we’re excited about the future for our company and for patients who need our products.” – David Ricks
Eli Lilly has had a very impressive run. This success comes in no small part to its strategic emphasis on breakthrough therapies for chronic diseases such as obesity and diabetes. The company’s commitment to addressing substantial public health challenges has fueled public demand for the products it sells, leading to unprecedented multi-billion dollar sales figures.
Eli Lilly isn’t just looking down the road at self-driving cars. Stakeholders will be watching closely how the company responds to market pressures and continues to address growing expectations from customers. In fact, the pharmaceutical industry is one of the most competitive. Hundreds of other businesses are competing for market share in the lucrative weight loss and diabetes treatment industries.