Eli Lilly's stock rallies after raising full-year profit outlook

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Shares of Eli Lilly & Co. rallied 1.6% in premarket trading Tuesday, after the drug maker raised its full-year profit outlook and provided an upbeat 2021 revenue forecast. The company said it now expects 2020 net earnings per share of $6.28 to $6.48 and adjusted 2020 earnings per share of $7.45 to $7.65, up from guidance ranges provided in late-October for net EPS of $6.20-$6.40 and adjusted EPS of $7.20 to $7.40. The FactSet consensus for adjusted EPS is $7.24. The company now projects 2020 revenue of $24.2 billion to $24.7 billion, above the FactSet consensus of $23.95 billion. For 2021, Lilly expects net EPS of $7.25 to $7.90 and adjusted EPS of $7.75 to $8.40, surrounding the FactSet consensus of $8.08, and revenue of $26.5 billion to $28.5 billion, above expectations of $26.5 billion. Earlier, Lilly also announced a deal to buy Prevail Therapeutics Inc. in a deal that could be valued at up to $1.04 billion.