LLY - Eli Lilly's Growth And Challenges: A Cautious Buy
2024-06-01 17:11:39 ET
Summary
- Eli Lilly announced impressive Q1 2024 financial results, with revenue surging by 26% YoY and exceeding expectations for earnings per share.
- The company raised its full-year 2024 revenue guidance and adjusted earnings per share guidance.
- While facing challenges with the price of its stock and supply chain issues, Eli Lilly anticipates significant increases in shipment volumes in the second half of 2024.
- Initiating coverage with a cautious Buy based on Eli Lilly expansion plans, strong management team, and high demand. However, near-term volatility is possible due to all time highs.
- My analysis specializes in identifying companies that are experiencing growth at a reasonable price. Rating systems don't consider time horizons or investment strategies. My articles aim to inform, not to make decisions.
Investment Thesis
Eli Lilly (LLY), announced impressive financial results for the first quarter of 2024. Revenue surged by 26% YoY, fueled by strong sales of not only obesity drugs Mounjaro and Zepbound but also other drugs in their portfolio including Verzenio and Jardiance growing at 40% and 19% respectively. In their latest earnings report, profit rose to $2.24 billion from $1.34 billion a year earlier, with earnings per share exceeding expectations reaching $2.58....
Eli Lilly's Growth And Challenges: A Cautious Buy