Eli Lilly’s Q2 2024 results exceeded expectations with $11.30 billion in revenue and a 68% EPS growth, driven by the success of Mounjaro, Zepbound, and Verzenio.
Points
- Q2 revenue increased by 36% year-over-year to $11.30 billion.
- Net income surged to $2.97 billion, a significant increase from $1.76 billion in Q2 2023.
- Key products Mounjaro, Zepbound, and Verzenio drove substantial revenue growth.
- Full-year revenue guidance raised to $45.4 billion to $46.6 billion.
Eli Lilly and Company （LLY） reported stellar financial results for Q2 2024, with revenue reaching $11.30 billion, marking a 36% year-over-year increase. This impressive performance was primarily driven by the success of key products Mounjaro, Zepbound, and Verzenio. When excluding the $579 million revenue from the sale of rights for Baqsimi in Q2 2023, the revenue growth stands at an even more impressive 46%.
The company’s gross margin improved significantly, rising by 40% to $9.13 billion, which translates to 80.8% of revenue. This improvement was driven by a favorable product mix and higher realized prices, partially offset by higher production costs.
LLY Beats Expectations Significantly in Q2
Eli Lilly’s performance exceeded market expectations significantly. Analysts had projected an EPS of $2.75 and revenue of $10 billion for the quarter. However, the company reported an EPS of $3.28 on a reported basis and $3.92 on a non-GAAP basis, far surpassing the anticipated figures. The actual revenue of $11.30 billion also exceeded expectations by a substantial margin.
The standout performance was largely driven by the robust sales of Mounjaro, which generated $3.09 billion in revenue compared to $979.7 million in Q2 2023. This remarkable growth was fueled by strong demand, improved channel dynamics, and higher realized prices in the U.S. Similarly, Zepbound and Verzenio also contributed significantly to the revenue, with Zepbound recording $1.24 billion in U.S. sales following its launch in November 2023 for treating obesity and overweight patients.
LLY Up Guidance for Full Year 2024
Eli Lilly has raised its full-year revenue guidance by $3 billion, now forecasting revenue in the range of $45.4 billion to $46.6 billion. This upward revision is primarily driven by the strong performance of Mounjaro and Zepbound, as well as the company’s non-incretin medicines.
The company has also gained greater clarity into the timing and pace of its production expansions and planned launches of Mounjaro outside the U.S.
The EPS guidance has been adjusted upward as well, with reported EPS now expected to be between $15.10 and $15.60, and non-GAAP EPS projected to range from $16.10 to $16.60. These revisions reflect the company’s confidence in its operational performance and strategic initiatives.
Conclusion
Eli Lilly’s Q2 2024 performance showcases its robust growth trajectory, driven by key products and strategic initiatives. The significant revenue increase and upward revision of full-year guidance underscore the company’s strong market position and potential for continued success.
解説
- Non-GAAP EPS: Non-GAAP earnings per share exclude certain items that the company considers non-recurring, providing a clearer view of operational performance.
- Gross Margin: The difference between revenue and cost of goods sold, expressed as a percentage of revenue.
- Incretin Medicines: Drugs that mimic or enhance the effects of incretins, hormones that help regulate blood sugar levels.