Eli Lilly Stock Jumps As Diabetes Newcomer Crushes Sales Expectations

Eli Lilly (LLY) stock rose early Thursday after the pharma company reported adjusted earnings of $1.62 per share and $6.96 billion in first-quarter sales.

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Analysts surveyed by FactSet expected Lilly to earn $1.73 per share, on an adjusted basis, and $6.86 billion in sales.

The company’s new diabetes treatment, Mounjaro, generated $568.5 million in sales, well ahead of Wall Street’s expectations for $433 million. Lilly is also testing Mounjaro as an obesity treatment, rivaling Novo Nordisk‘s (NVO) Wegovy and experimental drugs from Amgen (AMGN) and Viking Therapeutics (VKTX).

In the year-earlier period, Lilly earned $2.62 a share and reported $7.81 billion in sales.

For the year, Lilly boosted its revenue guidance by $900 million and now expects $31.2 billion to $31.7 billion. The company also expects to earn $8.65-$8.85 per share, minus some items. Eli Lilly stock analysts projected adjusted profit of $8.41 a share and $30.59 billion in sales.

In premarket trading on today’s stock market, Eli Lilly stock jumped 2.9% near 387.

Lilly shares recently topped a buy point at 376.41 out of a cup-with-handle base, according to MarketSmith.com. Lilly shares also have a strong IBD Digital Relative Strength Rating of 91. That puts their 12-month performance in the top 9% of all stocks regardless industry group.

More to follow.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

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