What Happened?

Shares of global pharmaceutical company Eli Lilly (NYSE:LLY) fell 11% in the afternoon session after the company reported weak first quarter 2025 results which included an EPS miss due to lower-than-expected profitability and full-year EPS guidance that missed significantly. On the other hand, Eli Lilly narrowly topped analysts' revenue expectations, fueled by surging demand for Mounjaro and Zepbound, which together drove a 45% year-over-year increase in total sales. Still, this was a softer quarter.

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What The Market Is Telling Us

Eli Lilly’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. Moves this big are rare for Eli Lilly and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 14 days ago when the stock gained 15.3% on the news that results from a Phase 3 trial showed that its experimental drug, Orforglipron, performed significantly well in helping patients manage obesity and diabetes. The stock's reaction suggested that investors were optimistic that, if approved, Lilly could scale production quickly and tap into the fast-growing diabetes and obesity markets.

Eli Lilly is up 4.5% since the beginning of the year, but at $812.94 per share, it is still trading 15.3% below its 52-week high of $960.02 from August 2024. Investors who bought $1,000 worth of Eli Lilly’s shares 5 years ago would now be looking at an investment worth $5,292.

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