Eli Lilly shares fall for a second straight session on Thursday, second-quarter earnings top estimates, full-year forecast revised up

Eli Lilly and Co’s (LLY) second-quarter earnings, reported on Thursday, topped Wall Street estimates, supported by sound demand for its Trulicity diabetes drug.

The company also revised up its full-year adjusted earnings forecast.

Eli Lilly shares closed lower for a second consecutive trading session in New York on Thursday. It has also been the steepest single-session loss since March 20th. The stock went down 5.41% ($8.75) to $153.00, after touching an intraday low at $150.45, or a price level not seen since June 15th ($139.85).

Shares of Eli Lilly and Company have risen 16.41% so far in 2020 compared with a 0.48% gain for the benchmark index, S&P 500 (SPX).

In 2019, Eli Lilly’s stock went up 13.58%, thus, it underperformed the S&P 500, which registered a 28.88% gain.

Eli Lilly’s total revenue dropped 2.4% year-on-year to $5.50 billion during the second quarter. However, sales of the Trulicity drug rose to $1.23 billion, while exceeding a consensus of estimates of $1.21 billion.

Eli Lilly said it had taken a $250 million hit to its second-quarter sales due to a delay in patients beginning new therapies.

Meanwhile, earnings per share, which exclude special items, were reported at $1.89 during the second quarter. In comparison, analysts on average had expected adjusted earnings of $1.56 per share.

The company also revised up its full-year 2020 adjusted earnings forecast to a range of $7.20-$7.40 per share from a previously expected range of $6.70-$6.90 per share.

Analyst stock price forecast and recommendation

According to CNN Money, the 12 analysts, offering 12-month forecasts regarding Eli Lilly and Co’s stock price, have a median target of $173.00, with a high estimate of $190.00 and a low estimate of $148.00. The median estimate represents a 13.07% upside compared to the closing price of $153.00 on July 30th.

The same media also reported that at least 8 out of 15 surveyed investment analysts had rated Eli Lilly and Co’s stock as “Buy”, while 7 – as “Hold”.

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