Eli Lilly Shares Plunge After Q3 Earnings Miss

Eli Lilly (NYSE: LLY) shares fell approximately 10% in premarket trading on Wednesday following Q3 earnings that did not meet analyst expectations.

The pharmaceutical giant reported adjusted earnings per share of $1.18, falling short of the consensus estimate of $1.45. Revenue totaled $11.44 billion, below the anticipated $12.09 billion.

Despite missing projections, revenue was still up 20% YoY, driven by robust sales of diabetes drug Mounjaro and weight loss treatment Zepbound. Excluding these products, non-incretin revenue rose 17%.

Eli Lilly also revised its full-year 2024 revenue guidance to between $45.4 billion and $46 billion, down from a previous range of $45.4 billion to $46.6 billion, and below the $46.25 billion expected by analysts.

The company lowered its 2024 adjusted EPS outlook to between $13.02 and $13.52, compared to the $13.50 consensus estimate. The earlier EPS forecast was between $16.10 and $16.60.

CEO David Ricks commented, "Lilly had another strong growth quarter in Q3, with total revenue increasing by 42% after excluding divestiture activity from the same period last year. While the growth of Mounjaro and Zepbound is impressive, we are equally proud of the 17% growth in non-incretin revenue."

Before the premarket drop on Wednesday, Eli Lilly shares had risen over 55% year-to-date.