Eli Lilly (LLY.US) warning: $1.57 billion acquisition of research and development costs will significantly drag down Q1 2025 performance.

Eli Lilly and Company (LLY.US) announced that, according to the Generally Accepted Accounting Principles (GAAP) in the United States, its financial performance for the first quarter of 2025 will include a pre-tax expense of $1.57 billion, which has been recognized as in-process research and development (IPR&D) expenses incurred during an acquisition process. In the statement, Eli Lilly and Company stated that the IPR&D expenses from this acquisition are expected to have a significant impact on its earnings for the quarter, resulting in a negative impact of approximately $1.57 per share on both GAAP and non-GAAP earnings. However, it is important to emphasize that these figures are only preliminary estimates, as the company has not yet completed the final confirmation of its financial position for the quarter ending March 31, 2025. According to Wall Street forecasts, Eli Lilly may achieve an average earnings per share of $4.70 and revenues of $12.8 billion in the first quarter of 2025. The market generally holds a positive outlook on Eli Lilly's stock, with analysts giving it an average "buy" rating.