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Key Takeaways
- Eli Lilly reports earnings August 8. Analysts expect the company's weight-loss drugs to further fuel the drugmaker's revenue and profits.
- The company and competitors like Novo Nordisk have worked to increase production capacities to meet the demand for the drugs.
- The space appears likely to get more competitive as other companies seek to advance their own products.
Eli Lilly (LLY) reports earnings before markets open on August 8, with analysts projecting revenue and profits to be boosted by the popularity of the weight-loss drugs Mounjaro and Zepbound.
The drugmaker is projected to report $9.97 billion in revenue, a 20% bump from last year's mark of $8.31 billion, with net income also projected to rise over 35% to $2.39 billion from $1.76 billion a year ago, according to estimates compiled by Visible Alpha.
| Analyst Estimates for Q2 2024 | Q1 2024 | Q2 2023 | |
| Revenue | $9.97 billion | $8.77 billion | $8.31 billion |
| Diluted EPS | $2.65 | $2.48 | $1.95 |
| Net Income | $2.39 billion | $2.24 billion | $1.76 billion |
Key Metric: Mounjaro, Zepbound Sales
Demand for the weight-loss drugs has boosted the revenue and shares of Eli Lilly along with Ozempic and Wegovy-maker Novo Nordisk (NVO) over the past year, as the companies have increased production capacity to meet demand.
In its first-quarter report, Eli Lilly lifted its revenue and profit projections for the full year due to strong sales for the weight-loss drugs.
JPMorgan analysts wrote Monday that Eli Lilly remains one of their "core holdings" in the pharmaceutical space, especially as the stock has fallen in recent weeks amid a market-wide rotation out of some of the largest stocks on the market..
Business Spotlight: Increasing Weight-Loss Competition
Eli Lilly and Novo Nordisk's dominance in the weight-loss space could be challenged in the coming quarters as drugs from competitors like Viking Therapeutics (VKTX) and Swiss drugmaker Roche have showed positive results in early trials. Telehealth company Hims & Hers Health (HIMS) announced its own weight-loss offerings in the quarter, potentially at a lower cost than popular drugs like Ozempic and Mounjaro.
JPMorgan analysts said they believe Eli Lilly and Novo Nordisk are likely to "remain dominant" in the weight loss space going forward despite increased competition. They continue to see "significant upside" to Mounjaro and Zepbound sales.
Eli Lilly shares were up 1.8% Wednesday to above $804, more than 37% above where they started the year, but down from record levels seen earlier this month.
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