Eli Lilly (LLY) Earnings Preview: What to Expect from Q3 Report and Stock Outlook
Eli Lilly and Company (LLY) is gearing up to report its third-quarter earnings on Wednesday, and investors are eagerly awaiting the results. Wall Street analysts are forecasting robust performance, driven by the company’s remarkable success in the rapidly expanding weight loss drug market. Lilly’s popular treatments, Mounjaro and Zepbound, have collectively generated over $4 billion in revenue last quarter, propelling the company to the forefront of this booming sector.
The stock has enjoyed an extraordinary run, surging over 58% in the past year and 51% year-to-date. It currently trades close to $900 a share, a remarkable climb from its $250 price point just two years ago. This impressive growth trajectory has led to speculation that Lilly could be poised for a stock split, which could make shares more accessible to a wider range of investors and further enhance its growth potential.
Technical Analysis Paints a Bearish Picture, But There’s Room for Optimism
While Lilly’s recent stock performance is impressive, technical indicators are currently painting a bearish picture. The stock is currently trading below its five-, 20-, and 50-day exponential moving averages, suggesting a sustained downward trend. Furthermore, the MACD indicator is negative, indicating a bearish sentiment. However, it’s worth noting that the RSI (Relative Strength Index) at 46.74 suggests the stock is approaching oversold territory, which could signal a potential rebound if buying pressure increases.
Analyst Sentiment Points Towards Upside Potential
Despite the bearish technical outlook, analysts remain optimistic about Eli Lilly’s future. The consensus analyst rating on the stock is currently a Buy, with a price target of $927.42, representing a potential 25.86% upside. Recent analyst ratings from Citigroup, Bernstein, and Truist Securities also suggest significant upside potential, with an average price target of $1,127.67.
Key Factors to Watch in Q3 Earnings Report
Here are the key factors investors will be paying close attention to when Lilly reports its third-quarter earnings:
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Revenue Growth:
Analysts expect to see strong revenue growth, driven by the continued success of Mounjaro and Zepbound.*
Profitability:
Investors will be keen to see if Lilly’s strong revenue growth translates into improved profitability.*
Guidance for 2024:
The company’s outlook for 2024 will be closely watched for any hints of future growth potential.*
Stock Split Discussion:
Investors will be on the lookout for any updates on the possibility of a stock split.Conclusion:
Eli Lilly’s Q3 earnings report is expected to shed light on the company’s continued growth in the weight loss drug market. While technical indicators currently suggest a bearish outlook, analyst ratings and potential oversold status point towards a possible bullish recovery. Investors will be watching for any updates on the possibility of a stock split, as well as the company’s guidance for 2024, to gain insights into its future trajectory.
