Eli Lilly & Co. (NYSE:) saw its shares jump 5.4% in premarket trading Tuesday after the pharmaceutical giant reported better-than-expected earnings and gross margin for the fiscal Q1 2024.

Specifically, Eli Lilly posted earnings per share (EPS) of $2.58, beating the analysts' expectations of $2.48. However, the company's revenue for the quarter was $8.77 billion, falling short of the consensus estimate of $8.94 billion.

Importantly, the company's gross margin improved significantly, reaching 80.9% compared to 76.6% in the same period last year and surpassing the consensus projection of 79.9%.

Looking forward, Eli Lilly expects its full-year 2024 EPS outlook to be between $13.50 and $14.00, well above the estimated $12.50.

The company also hiked its revenue forecast for the year to between $42.4 billion and $43.6 billion, compared to a consensus of $41.44 billion.

This upward revision, an increase of roughly $2 billion from the previous forecast, is primarily attributed to the strong performance of its drugs Mounjaro and Zepbound, as well as expanded production capabilities for the rest of the year.

"Lilly's first quarter performance reflects solid year-over-year revenue growth with strong sales of Mounjaro and Zepbound," said David A. Ricks, Lilly's chair and CEO.

"Our progress in addressing some of the world's most significant health care challenges has resulted in increased demand for our medicines.”