Healthcare major Eli Lilly’s (NYSE:LLY) third-quarter EPS of $0.10 came in ahead of expectations by $0.28. In sync, revenue of $9.49 billion outperformed estimates by $520 million. This was a nearly 36.7% year-over-year jump in the company’s top line.
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The rise in the company’s revenue was primarily due to higher sales of Mounjaro, Verzenio, and Jardiance, alongside a $1.42 billion contribution from the sale of rights for Lilly’s olanzapine portfolio. Importantly, the company’s top line received a boost from higher pricing and volume, and its growth products revenue rose by 12% to $4.96 billion.
Lilly’s gross margin ticked higher by 42% to $7.64 billion in Q3. Additionally, the company has completed the acquisitions of DICE Therapeutics, Versanis Bio, Emergence Therapeutics, and Sigilon Therapeutics. Further, Lilly’s recently announced acquisition of POINT Biopharma (NASDAQ:PNT) is expected to bolster the company’s oncology capabilities in radioligand therapies.
Despite this performance, LLY lowered its EPS outlook for Fiscal year 2023 to the range of $6.50 to $6.70 from the previous outlook in the range of $9.70 to $9.90. The company reaffirmed its revenue expectations of between $33.4 billion and $33.9 billion.
How High Will Eli Lilly Stock Go?
Overall, the Street has a Strong Buy consensus rating on Eli Lilly. The average LLY price target of $629.44 implies a modest 13.5% potential upside. That’s after a nearly 57% surge in LLY shares over the past year.
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