Shares of Eli Lilly (LLY) dropped sharply on January 14 following the pharmaceutical giant’s revision of its revenue forecast for the 2024 fiscal year.
The company, known for its popular weight-loss medications Mounjaro and Zepbound, reported slower-than-anticipated sales growth for these drugs in the fourth quarter, compounded by lower-than-expected inventory levels. As a result, Eli Lilly now expects fourth-quarter revenue of approximately $13.5 billion, bringing its full-year revenue to an estimated $45 billion. This marks a decrease from the company’s earlier projection of $45.4 billion to $46 billion, as outlined in its third-quarter report.
Wall Street had forecasted fourth-quarter revenue of $13.97 billion and full-year revenue of $45.48 billion, according to estimates compiled by Visible Alpha.
Despite the setback, Eli Lilly remains optimistic about the future growth of its weight-loss drug sales. CEO David Ricks indicated that the company expects continued sales growth in fiscal 2025, with a plan to produce at least 60% more doses of these drugs in the first half of the year compared to 2024 levels. The company has also projected revenue for fiscal 2025 to fall between $58 billion and $61 billion, slightly above analysts’ expectations of $59.33 billion.
The updated outlook was shared ahead of Ricks’ presentation at a healthcare conference on January 14 afternoon. Eli Lilly also plans to release its fourth-quarter earnings and provide a detailed forecast for fiscal 2025 on February 6.
Following the announcement, Eli Lilly shares were down nearly 7%, trading at $746 during intraday activity. Despite the drop, the company’s stock has risen more than 17% over the past 12 months.
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