Lilly Cuts Q4 Revenue View Below Market, Lifts FY24 Outlook; Sees Growth In FY25

Eli Lilly

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(RTTNews) - Drug major Eli Lilly and Co. (LLY) on Tuesday trimmed its fourth-quarter revenue view below the Street estimates, but raised forecast for fiscal 2024 revenues.

The company also issued fiscal 2025 outlook, expecting a growth. Revenue would be in the range of $58.0 billion to $61.0 billion, a growth of 32 percent at the midpoint compared to expected 2024 revenue.

The Wall Street analysts on average expect the company to report revenues of $58.48 billion for fiscal 2025. Analysts' estimates typically exclude special items.

For the fourth quarter, revenue is now expected to be around $13.5 billion, a growth of 45 percent from last year, but around $400 million below the low end of recently issued financial guidance.

The Street is looking for revenues of $13.95 billion for the quarter.

Lilly now expects approximately $3.5 billion for Mounjaro and $1.9 billion for Zepbound. In total, non-incretin revenue grew by 20 percent. However, the company's expected 2024 revenue is about 3 percent below the guidance range issued on October 30.

David Ricks, Lilly chair and CEO, said, "While the U.S. incretin market grew 45 percent compared to the same quarter last year, our previous guidance had anticipated even faster acceleration of growth for the quarter. That, in addition to lower-than-expected channel inventory at year-end, contributed to our Q4 results. We continued to make progress on our manufacturing build-out, and U.S. supply across all doses of tirzepatide was available throughout Q4. The rest of our medicines performed within our expectations."

For fiscal 2024, revenue is expected to be approximately $45.0 billion, a growth of 32 percent compared to the previous year, and $4 billion above the midpoint of first-time 2024 financial guidance.

The Street is looking for revenues of $45.55 billion for fiscal 2024.

Further, for 2025, Lilly anticipates revenue growth contributions to reflect new Lilly medicines such as Jaypirca, Ebglyss, Omvoh and Kisunla; approvals of new indications for existing Lilly medicines; launches of Mounjaro in additional worldwide markets, as well as potential launches of new medicines such as imlunestrant for metastatic breast cancer.

The company currently plans to announce fourth-quarter results and 2025 financial guidance on February 6.

In pre-market activity on the NYSE, Lilly shares were trading at $794.00, down 0.44 percent.