Shares of Eli Lilly (LLY, Financial) dipped on Wednesday by 6%, reaching its lowest since the beginning of March this year after reporting third-quarter results that blew a Wall Street prediction of adjusted earnings. The pharmaceutical leader released an alarming slowdown in the firm's GLP-1 block—the probable pile-up of new weight-shrink Zepbound and type 2 diabetes drug Mounjaro. Stocks plummeted to the low 4% just before the mid-morning trading session, down to about $110 billion, far from its cumulative value in 2017 alone.
The company disclosed the quarter's net sales nominally at $11.4 billion, $0.7 billion less than the forecasted $12.1 billion. The EPS was also below expected markers, and after posting $1.18, it was clear that it had missed the targeted $1.45 by 23%. However, their sales have been a major disappointment; Mounjaro and Zepbound's sales have been below expectations by more than 20%.
In addition, the company's forward-looking forecast added to investor frustration, with the forecasted 2024 revenues standing at between $45.4 and $46 billion against the expected $46.2 billion. The company's GAAP diluted EPS for the year was $12.29, while the adjusted diluted EPS of $13.27 also missed the mark of $13.42.
Still, Eli Lilly's shares today are still higher by 33% this year so far and by 590% for the past five years. Today's below-forecast results, though negative, demonstrate an improvement from the outcome a year ago. So, despite receiving negative signals from today's numbers, one has to wonder if this elimination is part of a company's overall decline.
