Eli Lilly and Company (NYSE: LLY) had a positive start to fiscal 2025, reporting strong revenue and earnings growth for the first quarter. The company has reaffirmed its commitment to continue expanding its manufacturing footprint in the US, with multiple active projects ongoing to build and expand new sites. Meanwhile, the management has cautioned that the new import tariffs may negatively impact the business.
Estimates
The pharma company’s second-quarter 2025 earnings report is scheduled for release on Thursday, August 7, at 6:45 am ET. On average, analysts following the business expect Q2 adjusted earnings to increase to $5.59 per share from $3.92 per share the company reported in the year-ago quarter. The bullish forecast reflects an estimated 30% growth in the June-quarter revenue to $14.67 billion.
Eli Lilly’s stock experienced significant fluctuations over the past several months, and the current value is broadly unchanged from the levels seen a year ago. The shares have declined about 9% in the past six months. The average price of Eli Lilly’s stock for the last 52 weeks is $825.39, which is well above the last closing price. The current valuation, being relatively low, may indicate an attractive entry point for investors.
Key Metrics
Adjusted earnings climbed 29% year-over-year to $3.34 per share in the first quarter. Earnings missed estimates, after beating in the prior quarter. On a reported basis, Q1 net income rose to $2.76 billion or $3.06 per share from $2.24 billion or $2.48 per share last year. The strong bottom-line performance reflects a 45% surge in worldwide revenue to $12.73 billion. Revenues broadly matched analysts’ estimates.
For fiscal 2025, the management expects revenue to be in the range of $58 billion to $61 billion. It lowered full-year earnings per share guidance to the range of $20.17 to 21.67, and adjusted earnings per share outlook to $20.78-22.28. The drugmaker has been diversifying its pipeline, with a focus on strengthening its foothold in the fast-growing diabetes market.
From Eli Lilly’s Q1 2025 Earnings Call:
“As a company, Lilly has a large U.S. manufacturing footprint with 10 active projects ongoing to build and expand new sites. Upon completion of our manufacturing agenda, we’ll be able to supply medicines for the U.S. market entirely from U.S. facilities, as well as increase the volume of medicines we export. We will continue to execute our U.S. manufacturing agenda. However, we urge the administration to negotiate deals with key trading partners as soon as possible that level the playing field for American exporters like Lilly and remove harmful tariffs and non-tariff market access barriers in the developed economies.”
On Tuesday, Eli Lilly’s stock opened at $765.57 and traded mostly lower during the session. It is down nearly 20% from the record highs of August 2024.