Pharmaceutical giant Eli Lilly falls short of analysts' expectations. The company falls short of its forecasts. The share reacts significantly.
Eli Lilly announced on Tuesday that it expects sales of around USD 13.5 billion for the fourth quarter of 2024. The analysts' consensus estimate was USD 13.95 billion. The pharmaceutical giant thus fell short of expectations.
In particular, Eli Lilly expects sales of the popular obesity drug Zepbound and the related diabetes drug Mounjaro to fall short of expectations in the fourth quarter. For 2025, however, the company is forecasting sales that are largely above estimates.
The company announced that it expects fourth-quarter sales of $3.5 billion for Mounjaro and $1.9 billion for Zepbound. Analysts, on the other hand, had expected sales of 5.35 billion US dollars for Mounjaro and 2.08 billion US dollars for Zepbound, according to data collected by LSEG.
"Our previous forecast had predicted even faster growth in the quarter. In addition, lower than expected year-end channel inventories led to our fourth quarter results," said CEO David Ricks.
This was clearly punished by the shareholders. In an initial reaction, the share price fell by up to 8 percent.
"Although the market for blood glucose-regulating hormones and drugs in the US grew by 45 percent compared to the same quarter last year, our earlier guidance for the quarter had anticipated even faster growth. In addition, lower than expected year-end channel inventories contributed to our fourth quarter results," said CEO David Ricks.
The sales forecast for the fourth quarter of 2024 corresponds to year-on-year growth of 45%.
Sales of around USD 45.0 billion are expected for the 2024 financial year, while the consensus forecast is USD 45.55 billion.
Eli Lilly had already missed consensus expectations in the third quarter and revised its forecast for 2024 downwards.
For 2025, the company expects sales in the range of USD 58 to 61 billion, compared to consensus estimates of USD 58.48 billion.
Eli Lilly plans to release its financial results and guidance for the coming years on February 6, 2025.
Author: Krischan Orth, wallstreetONLINE Editorial Team
