Zepbound Powers Eli Lilly's Upbeat Q2 Outlook

Eli Lilly and Co. (NYSE:LLY) is set to release its second-quarter earnings on August 7. According to Benzinga Pro data, analysts are anticipating adjusted earnings of $5.56 per share and sales of $14.4 billion.

Expectations are slightly higher for the quarter, primarily driven by the strong performance of its obesity drug, Zepbound. The pharmaceutical giant, a dominant player in the incretin/GLP-1 drug market for obesity and diabetes, continues to draw investor attention with its robust pipeline and long-term growth prospects.

Analyst Adjustments and Forecasts

Ahead of the earnings release, Bank of America Securities (BofA) has made minor adjustments to its earnings model for Eli Lilly.

Also Read: FDA Approves New Dosing Schedule For Eli Lilly’s Kisunla In Alzheimer’s Treatment

BofA analyst Tim Anderson specifically noted a slight, low single-digit percentage increase in second-quarter revenue and EPS forecasts, primarily driven by stronger anticipated sales of Zepbound.

Looking further out, the analyst updated full-year projections, expecting total revenue to rise by 1% and 0.4% in 2025, with EPS growing by 1.9% in 2025 but experiencing a slight dip of 0.7% in 2026.

Beyond 2026, revenue and EPS projections largely remain consistent. Importantly, long-term forecasts for Lilly’s key products, Mounjaro, Zepbound, orforglipron, and retatrutide, have not seen significant revisions.

BofA Maintains Buy Rating

BofA maintains a Buy rating on Eli Lilly, with a price forecast of $1,000. This reflects the firm’s view of Lilly’s exceptional and sustainable growth potential compared to its peers, at what is considered a reasonable valuation.

The core focus of the company remains its incretin/GLP-1 drugs for obesity and diabetes, a market where Lilly is expected to maintain a leading position in the foreseeable future alongside one other top company.

Key Focus Areas for the Earnings Call

The earnings call will focus on several key areas. Broader concerns around U.S. drug pricing changes, including the ‘most favored nation’ proposal and possible pharma-related tariffs under Section 232, are expected to be discussed.

Important upcoming clinical trial results, such as tirzepatide’s SURPASS-CVOT, orforglipron’s ATTAIN-1, and Novo Nordisk A/S’ (NYSE:NVO) REDEFINE-4, will also be a point of interest.

Performance updates on major products, especially Mounjaro and Zepbound, will be closely watched. Additionally, early launch progress for new drugs like Kisunla for Alzheimer’s and Ebglyss for eczema will be highlighted.

Price Action: LLY stock is trading higher by 0.82% to $784.07 at last check Wednesday.

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