World Street | US jobs data, Eli Lilly's revised forecast, bumper profits for European insurers and more

Eli Lilly announced stellar second-quarter earnings and revenue on Thursday, surpassing expectations and raising its full-year revenue forecast by $3 billion, fueled by soaring sales of its blockbuster diabetes drug Mounjaro and weight loss injection Zepbound.

The company's shares surged over 9 percent by the market's close. Eli Lilly now projects annual revenue between $45.4 billion and $46.6 billion, marking a $3 billion increase on both ends of the range. Additionally, the company boosted its full-year adjusted earnings outlook to $16.10-$16.60 per share, up from its prior guidance of $13.50-$14.

Changing Times

Under Armour Inc. reported better-than-expected results and raised its guidance, signaling a positive turnaround under the leadership of returning founder Kevin Plank. Amid an ongoing restructuring, the athletic-wear brand increased its annual forecast for adjusted earnings per share to as much as 22 cents, surpassing analysts' expectation of 20 cents.

For the first quarter ending in June, Under Armour reported $1.18 billion in sales, exceeding the $1.14 billion average analyst estimate. This week, the company announced the addition of former Adidas president Eric Liedtke as executive vice president of brand strategy, focusing on corporate strategy and marketing. With Liedtke's arrival, management is realigning its marketing efforts, including a greater investment in influencers and plans to double its roster.

Profit for all

Several European insurers reported robust first-half profits on Thursday, driven by customers facing higher premiums due to the lingering effects of the pandemic, war, and an uptick in natural disasters in recent years.

Higher interest rates have also bolstered insurance investment portfolios, according to industry insiders. Germany's Allianz surpassed expectations with a 7.5 percent increase in second-quarter net profit and confirmed it is on track to meet its full-year target. Zurich Insurance posted a record profit and indicated it would likely exceed its 2025 targets. Munich Re, Germany's reinsurer, also hinted at surpassing its full-year guidance. Meanwhile, shares of Lloyd's of London insurer Beazley reached record highs after its pretax profit nearly doubled, leading to an upgraded outlook. Peer Lancashire also reported earnings that analysts said exceeded expectations.

Glimmer of hope

China's consumer prices rose by 0.5 percent on year in July higher than expected, driven by a sharp increase in pork prices, according to data released Friday by the National Bureau of Statistics. Analysts surveyed by Reuters had anticipated a modest rise in the consumer price index to 0.3 percent in July, up from 0.2 percent in June. The 0.5 percent increase marks the highest CPI growth since February's 0.7 percent rise, which was influenced by the Lunar New Year, China's most significant holiday of the year.

Surprise Surprise

British food delivery firm Deliveroo reported its first-ever profit in the first half of the year, delivering a modest net profit of 1.3 million euros($1.65 million) after witnessing a rise in consumer demand. Backed by e-commerce giant Amazon, Deliveroo's first-half earnings show a stark turnaround from a loss of 82.9 million euros in the same period last year.

The company attributed its success to a 'positive inflection' in consumer demand, marked by increased order frequency and improved customer retention, driven by enhancements in its consumer value proposition (CVP). The company's revenue grew by 2 percent to 1,028.2 million euros, supported by a 2 percent spike in orders processed on its platform which came at 147.4 million during the period.