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In today’s trading session, Eli Lilly and Company (NYSE: LLY) is surging on better-than-expected quarterly results, while Warner Bros. Discovery (Nasdaq: WBD) is plummeting following a massive impairment charge. Meanwhile, Applied Materials (Nasdaq: AMAT) is gaining ground ahead of its earnings release next week.

Eli Lilly (LLY) Reports Stellar Second-Quarter Results, Stock Surges

Eli Lilly reported strong second-quarter earnings that exceeded analysts’ expectations. The pharmaceutical giant saw its revenue surge 36% year-over-year to $11.30 billion, surpassing the expected $10 billion. Reported earnings per share (EPS) rose 68% to $3.28, while non-GAAP EPS increased 86% to $3.92, both significantly above the $2.75 estimate.

The company’s performance was driven by robust sales of its GLP-1 drugs. Mounjaro sales reached $3.09 billion, more than tripling from $979.7 million in Q2 2023. Zepbound, launched in November 2023, recorded $1.24 billion in U.S. sales.

Following these results, Eli Lilly raised its full-year revenue guidance by $3 billion and increased its adjusted EPS guidance to a range of $16.10-$16.60. As of 11:26 AM EDT, LLY stock was trading at $837.43, up 8.46% for the day.

Warner Bros. Discovery (WBD) Stock Plummets on Massive Impairment Charge

Warner Bros. Discovery’s stock plummeted following its Q2 earnings report, which revealed a massive $11.2 billion in write-downs and charges.

The media conglomerate took a $9.1 billion impairment charge related to its TV networks unit and an additional $2.1 billion in merger-related costs. The company’s revenue dropped 6% year-over-year to $9.7 billion, missing analyst expectations.

The impairment charge was primarily due to the loss of a key media rights deal with the NBA, shifting industry dynamics affecting legacy media companies, and continued softness in the U.S. ad market. Despite adding 3.6 million Max subscribers, WBD reversed earlier profit trends in its streaming business. As of 11:27 AM EDT, WBD stock was trading at $6.98, down 9.48% for the day.

Applied Materials (AMAT) Set to Release Q2 Results on Thursday

Applied Materials is set to release its Q2 earnings on Thursday, August 15th, after market close. Analysts expect the semiconductor equipment manufacturer to report an EPS of $2.01 for the quarter. The company has provided Q3 guidance of $1.83-2.19 EPS and Q3 2024 guidance of 1.830-2.190 EPS.

Investors appear optimistic ahead of the earnings announcement, with AMAT stock trading up 5.69% at $188.66 as of 11:27 AM EDT. The company boasts a market capitalization of $156.206 billion and a price-to-earnings ratio of 20.51. Analysts maintain an average “Moderate Buy” rating on the stock with an average price target of $226.00, suggesting potential upside from current levels.

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