Eli Lilly (LLY) stock dropped about 9.83% today, May 1, 2025, trading at $810.55 per share. This decline happened even though the company reported strong first-quarter results that beat analyst expectations.
The main reason for the drop is Eli Lilly’s decision to lower its profit forecast for the year. While the company still expects to make between $58.0 billion and $61.0 billion in revenue, it reduced its earnings per share (EPS) prediction.
The new EPS estimate is between $20.78 and $22.28, down from the previous forecast of $22.50 to $24.00.
This cut in profit guidance is mainly due to costs related to acquired in-process research and development (IPR&D), which totaled about $1.57 billion in the first quarter, along with losses from investments in equity securities.
Investors are focusing on the lowered profit outlook instead of the company’s strong first-quarter results. Eli Lilly reported Q1 revenue of $12.73 billion, a 45% increase from last year, driven by strong sales from its diabetes drug Mounjaro and weight-loss medication Zepbound. The adjusted EPS for the quarter was $3.34, beating analyst estimates.
However, some reports say that sales for the key GLP-1 drugs were only slightly above expectations, and there are concerns about competition, such as CVS favoring a rival drug in its formulary.