The pharmaceutical company Eli Lilly and Company (NYSE:LLY) is set to report its first-quarter earnings on Tuesday, April 30. Analysts are expecting strong results, driven by the success of the company’s weight-loss drugs Zepbound and Mounjaro. However, the Food and Drug Administration has recently announced that supplies of these drugs are expected to be limited through the second quarter, creating uncertainty for traders. Despite this, Wall Street has raised the average price target for GE Aerospace stock, indicating positive news for long-time investors.

Earnings and Sales Expectations

According to consensus estimates, Eli Lilly is expected to generate $8.9 billion in sales and achieve adjusted earnings per share of $2.46 for the first quarter. The company’s revenue for Q1 2024 increased by 26%, primarily driven by the sales of Mounjaro, Zepbound, Verzenio, and Jardiance. These positive results reflect the progress made in the company’s pharmaceutical pipeline, including successful outcomes from two clinical trials.

Impact of Weight-Loss Drugs

One of the key factors investors will be watching closely is the impact of Zepbound and Mounjaro on Eli Lilly’s overall performance. The success of these weight-loss drugs could provide a significant boost to the company’s earnings and sales. However, the recent announcement by the Food and Drug Administration about limited supplies could affect the availability of these drugs and potentially hinder their contribution to Eli Lilly’s financial results.

Market Reaction and Stock Performance

Shares of Aptiv PLC, a global technology company, experienced a slight increase of 0.67% on Monday, reaching a price of $70.10. This positive movement was in line with a favorable trading session for the overall stock market. As for Eli Lilly’s stock, market analysts and traders have mixed views. Some consider the company to have strong fundamentals and expect consistent performance driven by its new drugs. Others remain cautious due to the uncertain impact of limited drug supplies on earnings.

Conclusion

Eli Lilly’s upcoming earnings report is highly anticipated due to the potential impact of its weight-loss drugs, Zepbound and Mounjaro. While analysts have high expectations for the company’s financial performance, the limited supplies announced by the Food and Drug Administration have raised concerns among traders. The market reaction remains uncertain, and investors will be closely monitoring the company’s earnings announcement to gain insights into its future prospects.

• Lilly Reports Earnings Tuesday. What to Expect. – The Motley Fool
• Eli Lilly Q1 Earnings Preview: Weight loss therapies to drive quarterly growth (NYSE:LLY) – Stocks Register
• Should Eli Lilly (LLY) Be in Your Portfolio Ahead of Q1 Earnings? – Zacks Investment Research