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Forbes
Forbes
30 Oct 2024


Drug maker Eli Lilly’s share price plunged Wednesday morning after the company reported worse third-quarter results than expected, especially in its weight-loss drug division, registering a rare misstep for the Wall Street darling.

Pharmaceutical Company Eli Lilly Headquarters

Eli Lilly stock is on pace for its worst loss since 2000.

Getty Images

Shares of Eli Lilly dropped about 14% within 15 minutes of market open, tumbling toward the worst daily percentage decline for the stock since the 31% loss suffered Aug. 9, 2000 and the third-worst day for the company dating back to July 1972.

Wednesday’s dive came as Eli Lilly’s results released at about 7 a.m. EDT were worse than analyst expectations across the board, headlined by its $11.4 billion in Q3 sales (5% below forecasts of $12.1 billion, according to FactSet) and $1.18 earnings per share (23% below forecasts of $1.45).

At the core of the disappointing results were weaker-than-expected revenue from Eli Lilly’s GLP-1 drug tirzepatide sold under the brand names Mounjaro for type 2 diabetes and Zepbound for weight loss.

Sales last quarter for Mounjaro were $3.11 billion, well below estimates of $3.77 billion, and sales for Zepbound were $1.26 billion, below estimates of $1.73 billion, a disappointment of more than 20% for the company’s GLP-1 class.

And perhaps more crucially for investors, Eli Lilly shared guidance for full-year results which were below Wall Street’s consensus, as the company’s $45.4 billion to $46 billion in projected 2024 sales fell short of average forecasts of $46.2 billion and its midpoint guidance of $13.27 adjusted earnings per share was below estimates of $13.42.

Eli Lilly will host its Q3 earnings conference call at 10 a.m. EDT.

$110 billion. That’s about how much of Eli Lilly’s market value was wiped out Wednesday. That’s more than the entire company was worth at the end of 2017, at $93 billion.

Despite Wednesday’s chilly reaction, shares of Eli Lilly remain up 33% year-to-date, and an eye popping 590% over the last five years. The below-expectation $13.27 profit per share would still be more than 100% year-over-year bottom line growth, indicating the sky is not exactly falling for the pharmaceutical company which also produces medications like diabetes drugs Humilin and Trulicity and erectile dysfunction drug Cialis.