Eli Lilly’s post-earnings decline is creating a buying opportunity for long-term investors

Eli Lilly (LLY) reported mixed fourth-quarter results Thursday morning, but we’re looking through the stock’s post-earnings sell-off because there’s no change to the pharmaceutical giant’s bright long-term potential. Notably, the company’s potential blockbuster obesity drug remains on track to be cleared by U.S. regulators by the second half of this year — encouraging news for shareholders, like us at the Club, whose investment case counts on the weight-loss therapy’s success. Revenue fell nearly 9% year-over-year, to $7.3 billion, missing analysts’ expectations for $7.33 billion, according to estimates compiled by Refinitiv. Much of the sales decline is tied to the loss of Covid-19 antibody revenue. Adjusted earnings-per-share (EPS) of $2.09 comfortably beat analysts’ forecasts of $1.78, according to Refinitv. Bottom line There’s definitely some noise surrounding Eli Lilly’s results, including sales of its key diabetes drug Mounjaro. But that’s not the only reason for the stock’s more than 5% decline in Thursday trading. A lot of this move lower is due to a vicious market rotation out of stocks that did well in 2022 like health care, energy, and consumer staples in favor of technology and other areas that were crushed last year by inflation and massive slowdowns in their […]

Click here to view original web page at www.cnbc.com