Friday, April 14, 2023

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Eli Lilly and Co. (LLY), Thermo Fisher Scientific Inc. (TMO) and Lockheed Martin Corp. (LMT). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Eli Lilly’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+25.4% vs. +10.3%). The company’s revenue growth is being driven by higher demand for drugs like Trulicity, Taltz and others. Lilly expects to launch four new medicines by 2023 end with Mounjaro for type II diabetes already launched and cancer drug Jaypirca already approved.

Mounjaro is off to a solid start. However, the CRL for donanemab and mirikizumab will probably delay potential launch of the candidates by several months.

Generic competition for several drugs, rising pricing pressure in the United States mainly on key drug, Trulicity, and price cuts in some international markets like China, Japan and Europe are a few top-line headwinds. Estimates have gone up slightly ahead of Q1 results. Lilly has a mixed record of earnings surprises in the recent quarters.

(You can read the full research report on Eli Lilly here >>>)

Shares of Thermo Fisher Scientific have outperformed the Zacks Medical - Instruments industry over the past year (+3.0% vs. -11.1%). The company’s robust year-over-year revenue growth in the Analytical Instruments and the Laboratory Products and Biopharma Services segments appears promising.

During the fourth quarter, the company opened a new bioanalytical lab in Richmond, VA to support its clinical research business. The integration of PPD is largely complete and drove strong returns for the shareholders with outstanding execution and business performance throughout the year.

However, revenues within Europe declined in the low teens. The same in Asia Pacific fell in the mid-single digits, while China registered a decline in the mid-single digits. Revenues in the rest of the world declined in high-single digits.

(You can read the full research report on Thermo Fisher Scientific here >>>)

Shares of Lockheed Martin have outperformed the Zacks Aerospace - Defense industry over the past year (+7.0% vs. -0.1%). The company enjoys a consistent level of contract flows, and subsequent backlog growth bolsters its long-term revenue prospects.

It remains the largest U.S. defense contractor that has a steady order inflow from its leveraged presence in the Army, Air Force, Navy and IT programs. The U.S. budgetary provisions boost LMT’s business. Lockheed expects to deliver 147 to 153 F-35 aircraft in 2023 and 2024.

However, America and Turkey's tiff as a result of the latter accepting Russian products may hurt its component supply from Turkey. Lockheed is facing performance issues concerning some of its products, which may hurt its results. An uncertainty revolving around the possible sanction by China on Lockheed might impact the latter.

(You can read the full research report on Lockheed Martin here >>>)

Other noteworthy reports we are featuring today include Merck & Co., Inc. (MRK), Boston Scientific Corp. (BSX) and Canadian Pacific Railway Ltd. (CP).

Mark Vickery
Senior Editor

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>