Zacks Research Has Pessimistic Outlook of LLY Q4 Earnings

Key Points

• Zacks Research has lowered its Q4 2025 earnings estimate for Eli Lilly to $6.83 per share, down from the previous estimate of $6.97.
• Eli Lilly recently reported Q2 earnings of $6.31 per share, surpassing expectations and showing a significant 37.6% year-over-year revenue increase.
• The company announced a quarterly dividend of $1.50 per share, with an annualized dividend yield of 0.8%, reflecting a payout ratio of 39.22%.

Eli Lilly and Company (NYSE:LLY - Free Report) - Stock analysts at Zacks Research reduced their Q4 2025 EPS estimates for Eli Lilly and Company in a research note issued to investors on Thursday, August 28th. Zacks Research analyst Team now anticipates that the company will post earnings of $6.83 per share for the quarter, down from their prior estimate of $6.97. The consensus estimate for Eli Lilly and Company's current full-year earnings is $23.48 per share. Zacks Research also issued estimates for Eli Lilly and Company's Q1 2026 earnings at $6.22 EPS, FY2026 earnings at $29.21 EPS and FY2027 earnings at $34.91 EPS.

Several other research firms have also recently commented on LLY. UBS Group cut their price target on Eli Lilly and Company from $1,050.00 to $895.00 and set a "buy" rating for the company in a report on Friday, August 8th. Wall Street Zen upgraded Eli Lilly and Company from a "buy" rating to a "strong-buy" rating in a research report on Saturday. Guggenheim cut their target price on Eli Lilly and Company from $942.00 to $875.00 and set a "buy" rating for the company in a research note on Wednesday, August 13th. DZ Bank upgraded shares of Eli Lilly and Company from a "hold" rating to a "strong-buy" rating in a research note on Thursday, August 14th. Finally, HSBC upgraded shares of Eli Lilly and Company from a "reduce" rating to a "hold" rating and lifted their price target for the stock from $675.00 to $700.00 in a research note on Wednesday, August 27th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $950.17.

Eli Lilly and Company Stock Performance

Shares of NYSE LLY traded up $0.45 during mid-day trading on Monday, hitting $732.41. The company had a trading volume of 2,548,350 shares, compared to its average volume of 6,780,151. Eli Lilly and Company has a 12 month low of $623.78 and a 12 month high of $969.65. The firm has a market cap of $693.20 billion, a P/E ratio of 47.87, a PEG ratio of 1.02 and a beta of 0.47. The business's 50-day simple moving average is $748.68 and its 200-day simple moving average is $784.88. The company has a debt-to-equity ratio of 1.86, a current ratio of 1.28 and a quick ratio of 1.00.

Eli Lilly and Company (NYSE:LLY - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The company reported $6.31 earnings per share for the quarter, beating analysts' consensus estimates of $5.59 by $0.72. Eli Lilly and Company had a net margin of 25.91% and a return on equity of 92.72%. The firm had revenue of $15.56 billion during the quarter, compared to the consensus estimate of $14.40 billion. During the same period in the prior year, the firm earned $3.92 EPS. The business's revenue was up 37.6% on a year-over-year basis. Eli Lilly and Company has set its FY 2025 guidance at 21.750-23.000 EPS.

Eli Lilly and Company Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 10th. Investors of record on Friday, August 15th will be given a dividend of $1.50 per share. The ex-dividend date is Friday, August 15th. This represents a $6.00 dividend on an annualized basis and a dividend yield of 0.8%. Eli Lilly and Company's dividend payout ratio (DPR) is 39.22%.

Insider Activity

In other news, EVP Daniel Skovronsky bought 1,000 shares of the business's stock in a transaction dated Tuesday, August 12th. The stock was bought at an average price of $634.40 per share, for a total transaction of $634,400.00. Following the completion of the purchase, the executive vice president owned 137,660 shares of the company's stock, valued at approximately $87,331,504. The trade was a 0.73% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO David A. Ricks purchased 1,632 shares of the firm's stock in a transaction that occurred on Tuesday, August 12th. The shares were acquired at an average price of $644.77 per share, for a total transaction of $1,052,264.64. Following the completion of the transaction, the chief executive officer owned 546,601 shares in the company, valued at $352,431,926.77. The trade was a 0.30% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders purchased a total of 4,514 shares of company stock worth $2,894,841 over the last ninety days. Corporate insiders own 0.14% of the company's stock.

Institutional Trading of Eli Lilly and Company

Several large investors have recently made changes to their positions in LLY. Corient IA LLC bought a new position in shares of Eli Lilly and Company in the first quarter valued at about $570,000. LS Investment Advisors LLC raised its holdings in shares of Eli Lilly and Company by 1.7% in the first quarter. LS Investment Advisors LLC now owns 2,340 shares of the company's stock valued at $1,933,000 after buying an additional 40 shares during the last quarter. Prism Advisors Inc. bought a new position in shares of Eli Lilly and Company in the first quarter valued at about $207,000. Hemington Wealth Management raised its holdings in shares of Eli Lilly and Company by 14.4% in the first quarter. Hemington Wealth Management now owns 985 shares of the company's stock valued at $813,000 after buying an additional 124 shares during the last quarter. Finally, Bfsg LLC raised its holdings in shares of Eli Lilly and Company by 1.4% in the first quarter. Bfsg LLC now owns 2,959 shares of the company's stock valued at $2,444,000 after buying an additional 42 shares during the last quarter. Institutional investors own 82.53% of the company's stock.

About Eli Lilly and Company

Eli Lilly and Company discovers, develops, and markets human pharmaceuticals worldwide. The company offers Basaglar, Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, insulin lispro protamine, insulin lispro mix 75/25, Humulin, Humulin 70/30, Humulin N, Humulin R, and Humulin U-500 for diabetes; Jardiance, Mounjaro, and Trulicity for type 2 diabetes; and Zepbound for obesity.