On February 6, 2025, Eli Lilly and Co (LLY, Financial) released its 8-K filing detailing the financial results for the fourth quarter of 2024. The company, known for its focus on neuroscience, cardiometabolic, cancer, and immunology, reported a significant increase in revenue and earnings per share (EPS) compared to the previous year. However, the results fell short of analyst estimates for the quarter.

Performance Overview

Eli Lilly and Co (LLY, Financial) reported a 45% increase in revenue for Q4 2024, reaching $13.53 billion, driven primarily by volume growth from key products Mounjaro and Zepbound. Despite this impressive growth, the revenue fell short of the analyst estimate of $13,587.92 million. The company's reported EPS increased by 102% to $4.88. The non-GAAP EPS rose by 114% to $5.32. Both figures, however, were below the estimated EPS of $4.95.

Key Financial Achievements

The company's financial achievements were highlighted by the approval of new products and significant pipeline progress. Notably, Zepbound received U.S. approval for treating moderate-to-severe obstructive sleep apnea in adults with obesity, and Omvoh was approved for Crohn's disease. These developments are crucial for Eli Lilly and Co (LLY, Financial) as they enhance the company's product portfolio and potential market reach.

Income Statement and Key Metrics

In Q4 2024, Eli Lilly and Co (LLY, Financial) reported a net income of $4.41 billion, a 101% increase from the previous year. The gross margin increased by 47% to $11.13 billion, with a gross margin percentage of 82.2%, up by 1.3 percentage points. The increase was primarily driven by a favorable product mix, although it was partially offset by lower realized prices.

Analysis and Future Outlook

Eli Lilly and Co (LLY, Financial) demonstrated robust growth in Q4 2024, driven by strategic product launches and pipeline advancements. However, the shortfall in meeting analyst estimates highlights potential challenges in pricing strategies and market competition. The company's 2025 guidance projects revenue between $58.0 billion and $61.0 billion, with EPS expected to range from $22.05 to $23.55 on a reported basis. This outlook reflects the company's commitment to expanding its manufacturing capacity and launching new medicines.

2024 was a highly successful year for Lilly," said David A. Ricks, Lilly's chair and CEO. "We enter 2025 with tremendous momentum and look forward to strong financial performance and several important Phase 3 readouts which, if positive, will further accelerate our long-term growth."

Overall, Eli Lilly and Co (LLY, Financial) remains a key player in the pharmaceutical industry, with a strong focus on innovation and growth. Investors will be keen to see how the company navigates the challenges ahead and capitalizes on its recent product approvals and pipeline developments.

Explore the complete 8-K earnings release (here) from Eli Lilly and Co for further details.