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