What happened?

Shares of the pharma giant Eli Lilly (NYSE:LLY) were down by 5.7% as of 11:28 a.m. EDT on Thursday, after the company reported mixed second-quarter results before the market opened today.

So what

There were a few things to appreciate about Eli Lilly's financial results. For instance, the company's adjusted net income of $1.7 billion was an increase of 24% compared with the prior-year quarter; adjusted earnings also increased by 26% to $1.89 per share. The company's EPS handily beat the average analyst estimate of $1.56. But revenue decreased by 2% year over year to $5.5 billion. Although Lilly reported higher sales volumes, these were offset by lower realized prices for some of its products.

In other good news for investors, the company raised its 2020 guidance, and now expects its adjusted EPS to come in between $7.20 to $7.40, up from its previous estimate of $6.70 to $6.90.

Five downward pointing arrows on a blackboard.

Image source: Getty Images.

Now what 

Even with today's losses, Lilly's stock is up by more than 15% year to date. The healthcare company owes this performance in part to its efforts to develop a treatment for COVID-19. In June, it started three separate clinical trials for potential therapies for the disease.

Beyond its coronavirus-related efforts, the pharma giant boasts several exciting opportunities. In particular, its cancer treatment Verzenio recently scored a major win in a phase 3 study. Eli Lilly could add a new indication to this drug (whose sales are growing rapidly already) relatively soon. In short, despite the company's mixed quarterly update, the stock is still worth considering.