Eli Lilly and Company (LLY) is on a roll, experiencing a 1.37% surge in pre-market trading on Wednesday, fueled by anticipation for the company’s upcoming third-quarter earnings announcement. Wall Street analysts are projecting earnings per share of $1.45 and revenues of $12.1 billion, reflecting the company’s continued momentum in the market.
Eli Lilly has established itself as a leader in the burgeoning weight loss drug market. Its products, Mounjaro and Zepbound, have been a massive success, generating over $4 billion in revenue during the last quarter alone. This success has translated into remarkable stock growth, with LLY shares soaring 58.31% over the past year and an impressive 51.23% year-to-date. As shares approach the $900 mark, the company’s surge from around $250 just two years ago has sparked speculation about a potential stock split. This move could make shares more accessible to a wider range of investors, potentially boosting its reach and further fueling its upward trajectory.
Eli Lilly’s dominance in the weight loss drug market is propelling it towards a significant milestone: becoming the first pharmaceutical company to achieve a trillion-dollar market cap. With a current market cap of $796.4 billion and an enterprise value of $821.9 billion as of early October, the company is well on its way. The stock has nearly doubled since May 2022, outperforming both the S&P 500 and NASDAQ following the FDA approval of Mounjaro as a treatment for type 2 diabetes.
Eli Lilly’s aggressive stance against unauthorized copies of its weight loss drugs has also contributed to its success. The company has been actively pursuing legal action against compounders producing knock-off versions of its medications. The FDA recently declared the shortage of Eli Lilly’s tirzepatide injection resolved, serving as a reminder to compounders about legal restrictions on replicating FDA-approved medications.
The upcoming earnings announcement is poised to be a significant event for Eli Lilly, potentially further solidifying its position as a market leader and driving the company closer to its trillion-dollar goal. Investors and analysts alike will be closely watching to see if the company delivers on its strong performance and whether a stock split announcement is in the cards.
