Cramer's Morning Take: Eli Lilly 4/30/24

Jim Cramer (0:01)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club Morning Meeting.

We've got a mixed market here. It's trading down, but it may bounce, because we've had a series of brown shoots, and the POMCOS index came in hot, but the PMI was weaker. I don't want to get too much in the weeds here. I would say what's happening is, I continue to believe that the previous month was not strong. I continue to believe that there is no stagflation. I continue to believe that we can be stock pickers here, but we have to have companies that do better than expected.

Jeff Marks (0:31)

No, absolutely. That's obviously the key to the game. Companies beating and raising. Saw some of that today in a few of our companies.

Didn't see that in another. We'll get into that in a moment. But you mentioned the economic data. That comes ahead of the Fed meeting tomorrow. So we'll get Powell's view on everything.

Certainly not expecting him to cut rates, but we'll see. But why don't we just jump into earnings? Sure, absolutely. Really important, starting with Eli Lilly.

Revenues did miss. A lot of that had to do with the shortages, though, of Terzepatide, Mounjaro, Zepbound, the GLP ones. Not a demand issue, of course, but a big earnings beat. But the most important thing was that they raised the four-year outlook for revenue. Two billion, pretty big number, to 42.4 billion to 43.6 billion, well above consensus. And that's all off continued strong performance in Mounjaro and Zepbound. But also greater visibility into production expansion for the remainder of the year.

Jim Cramer (1:28)

Right, now they tell me in November, one of the plants is open, it's going to be online. There's another one coming, they have capacity all over the country, they're trying to grow, they have European capacity. They're doing everything they can, which is why they're using a very big number for the end of the year, because they will have a gigantic increase in production, which is important because they're losing a lot of share to Wigovie, which is considered to be equal, although Lilly does have some characteristics that are a little bit better in terms of ease of when you can use it. Now, I do think also that David Ricks made a point that they will have a pill maybe within the next year. No one else has that. There are other people who claim Amgen claimed it, but they don't have it within the next year, given the fact that they already have a formulation that's working, the FDA will fast track this.

So I like everything I heard. The company is being a little more bullish while finally they are bullish.

Jeff Marks (2:16)

And remember the shortage, it's not the medicine itself, it's the auto injector. So they are looking for ways to perhaps increase the medicine in a single injector. They have that quickie pen use outside of the United States where you can do four shots in one injector.

So they are looking for ways to essentially give more medicine to patients, but we'll see. Again, when you have a miss, I mean, on revs.

Jim Cramer (2:47)

It was shrunk off again, because it's a shortage of supply.

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