Eli Lilly (LLY) is expected to see a multi-fold increase in its earnings during its third quarter earnings, which is scheduled for October 29 after markets close.
The pharma giant is expected to report per-share earnings of $5.92 while revenue is likely to see a nearly 41% year-on-year jump to $16.07 billion.
Over the last 3 months, EPS estimates have seen 6 upward revisions and 10 downward moves, while revenue estimates have been revised 14 times in the upward direction and once downward.
Ahead of the earnings, analysts are bullish on the company’s diverse mix of business and its presence in international markets catering to a wide base of consumers.
While Mounjaro and Zepbound remain Eli Lilly’s fastest-growing products, the company’s portfolio extends beyond them. Its cancer drug Verzenio, used to treat breast cancer, also serves as a key growth driver in another rapidly expanding market.
Seeking Alpha analyst ALLKA Research said that he sees total sales of the tirzepatide franchise (Zepbound and Mounjaro) to be $10.9 billion in Q3, representing a 150% year-over-year increase.
The healthcare behemoth also recently announced the acquisition of Adverum Biotechnologies (ADVM) and its lead gene therapy candidate, Ixo-vec. Investors will be watching for management’s additional commentary on the transaction.
Heading into the third-quarter results, RI Research expects Eli Lilly to extend its strong track record of earnings surprises and sees the results as a potential positive catalyst for the company’s valuation.
“With Q3 highly likely being a positive catalyst, there is a solid probability that LLY’s valuation ratios can return to their historical averages post-earnings,” they said.
Over the last 2 years, LLY has beaten EPS estimates 63% of the time and has beaten revenue estimates 75% of the time.