LLY's Q4 Earnings Beat, Mounjaro, Zepbound Sales Fall Shy of Estimates

Core Insights - Eli Lilly and Company reported fourth-quarter 2024 adjusted earnings per share (EPS) of $5.32, exceeding the Zacks Consensus Estimate of $5.03, with a year-over-year increase of 114% [1] - Revenues for the quarter reached $13.53 billion, a 45% increase year-over-year, aligning with preliminary figures and surpassing the Zacks Consensus Estimate of $13.47 billion [1][2] Financial Performance - Adjusted earnings included a charge of 19 cents per share related to acquired in-process research and development [1] - Revenues benefited from a one-time payment of $300 million from Boehringer Ingelheim due to a collaboration amendment for Jardiance [2] - Sales of key growth products rose 13% to $5.95 billion, while new products contributed $5.64 billion to revenues [3] Product Sales Analysis - Mounjaro sales reached $3.53 billion, a 60% increase year-over-year, but missed the Zacks Consensus Estimate of $3.88 billion [5] - Zepbound recorded sales of $1.91 billion, up from $1.26 billion in the previous quarter, but also fell short of estimates [6] - Trulicity generated revenues of $1.25 billion, down 25% year-over-year, primarily due to competitive dynamics [10] - Jardiance sales rose 50% to $1.2 billion, benefiting from the one-time payment, despite a 1% decline in U.S. revenues [11] - Taltz and Verzenio saw sales increases of 21% and 36% year-over-year, respectively, both exceeding estimates [12][13] Geographic Revenue Breakdown - U.S. revenues increased by 40% to $9.03 billion, while ex-U.S. revenues rose 55% to $4.50 billion [4] Full-Year Performance - For the full year 2024, sales rose 32% to $45.04 billion, slightly missing the Zacks Consensus Estimate of $45.22 billion [16] - Adjusted earnings for 2024 were $12.99 per share, up 105.5% year-over-year, beating the Zacks Consensus Estimate [17] Future Outlook - For 2025, Lilly expects revenues between $58.0 billion and $61.0 billion, indicating a year-over-year growth of 32% [18] - EPS for 2025 is projected to be in the range of $22.50 to $24.00, with the Zacks Consensus Estimate at $23.79 [18] - The company anticipates increased production of incretin medicines and the launch of new drugs to drive sales growth in 2025 [22][23]