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Eli Lilly Drops 6.06% Despite 30% EPS Surge, Guidance Cut

Mover TrackerThursday, May 1, 2025 7:35 am ET
1min read

On May 1, 2025, Eli Lilly's stock dropped 4.56% in pre-market trading, reflecting investor concerns over the company's recent financial performance and market outlook.

Eli Lilly reported strong first-quarter results, with revenue reaching $12.73 billion, surpassing market expectations of $12.67 billion. The company's adjusted earnings per share (EPS) were $3.34, a 30% increase year-over-year. However, eli lilly lowered its full-year revenue and EPS guidance, citing current trade and tariff environments. The company now expects revenue between $580 billion and $610 billion, and EPS between $20.78 and $22.20.

Despite the strong quarterly performance, Eli Lilly's stock traded down 6.06% in pre-market trading. Investors were concerned about the company's lowered profit outlook and the potential impact on its stock price. The company's revenue soared 45% due to strong sales of its weight-loss and diabetes drugs, but the lowered profit outlook outweighed the positive news.

Eli Lilly's weight-loss drug Zepbound, which contains the active ingredient tirzepatide, saw lower-than-expected sales in the third quarter of 2024. The company attributed this to wholesale distributors reducing their inventory levels. Eli Lilly's CEO, Dave Ricks, assured investors that the demand for Zepbound remains strong and that the company is investing in direct-to-consumer marketing to expand patient access.

Eli Lilly is also developing new weight-loss drugs, including Retatrutide, a GLP-1/GIP/GCG triple agonist, and Orforglipron, an oral GLP-1R agonist. Both drugs have shown promising results in clinical trials, with Retatrutide achieving a 24.2% average weight loss in 48 weeks, and Orforglipron achieving a 14.7% average weight loss in 36 weeks. Eli Lilly is planning to expand the testing of its weight-loss drugs to individuals who are not yet overweight but are at risk of gaining weight.

Ask Aime: Did Eli Lilly's stock drop after Q1 earnings despite strong sales and guidance?

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SuperNewk
05/01
$LLY The CEO was at the White House yesterday sucking up to Trump and giving away a lot of money. Then he was the only one Trump said I want to talk to you. Now the stock is plummeting.
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RiverJumper84
05/01
$LLY added 801.30s
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Noway721
05/01
@RiverJumper84 How long you been holding $LLY? Think it'll keep climbing?
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highrollerr90
05/01
$LLY ouch head to Kohls
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SmallVegetable4365
05/01
Tariffs biting into LLY's profits. Not great for the bottom line. Maybe time to rethink some strategies.
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2strange4things
05/01
Trade and tariff issues are a real headwind for LLY. Hope they navigate it well. Could impact Q3 results.
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Substance_Technical
05/01
Eli LiLLY's got the goods, but the market's a beast. Tariffs are the new nemesis, huh?
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_hiddenscout
05/01
Zepbound's slow start was a surprise, but CEO's got a plan. Direct-to-consumer marketing could shake things up. 🤔
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lies_are_comforting
05/01
LLY's stock drop is a bummer, but sometimes you've gotta weather the storm. Diamond hands, anyone? 💎
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mrkitanakahn
05/01
Zepbound's got hype, but those distributor moves were a bummer. Gotta keep an eye on how Lilly plays this out.
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mmmoctopie
05/01
Eli LiLLY's focus on expanding patient access is good for the community. New drugs could mean new opportunities.
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grailly
05/01
Strong EPS but revenue guidance cut. Mixed signals? Market can be moody. Keep an eye on how it recovers.
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nicpro85
05/01
Holding some LLY shares. Diversifying with $AAPL and bonds. Waiting to see how their new drugs pan out before going heavy.
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Roneffect
05/01
Zepbound's dip was a surprise, but CEO's got a plan.
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Michael_Therami
05/01
@Roneffect CEO's got a plan, but will it stick?
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Ok-Memory2809
05/01
Retatrutide's results are 🔥, bullish on Eli LiLLY's future.
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SeriousTsuki
05/01
Weight-loss drugs could be Eli LiLLY's ace in the hole.
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