Eli Lilly & Co (NYSE:LLY) experienced a 6% increase in its share price in pre-market today, following the announcement of its first-quarter financial results for 2024, which exceeded earnings expectations and showcased a significant improvement in gross margin. The pharmaceutical company reported an earnings per share (EPS) of $2.58, surpassing the forecast of $2.48. Despite this, the company’s revenue of $8.77 billion did not meet the expected $8.94 billion. The gross margin for the quarter was notably strong at 80.9%, an increase from 76.6% the previous year and above the anticipated 79.9%.
Looking ahead, Eli Lilly raised its EPS forecast for 2024 to a range of $13.50 to $14.00, significantly higher than the previous estimate of $12.50. Additionally, the company revised its revenue expectations upward to between $42.4 billion and $43.6 billion for the year, which is an increase of approximately $2 billion from its earlier projections. This optimistic adjustment is largely due to robust sales from its drugs Mounjaro and Zepbound and increased production capabilities anticipated for the remainder of the year.