- Elanco Animal Health Inc (NYSE:ELAN) has reported a Q1 EPS of $0.36, lower than the $0.37 reported a year ago, surpassing analysts' view of $0.35.
- Revenue was $1.225 billion, a decrease of 1% YY, slightly above the consensus of $1.22 billion.
- Pet Health's revenue decreased by 1% and was up 2% when excluding the unfavorable impact of foreign exchange rates.
- Growth in Seresto, Credelio franchise, and Galliprant was partially offset by continued pressure on legacy parasiticide brands.
- Farm Animal revenue decreased 2% and increased 1%, excluding foreign exchange rates' unfavorable impact.
- Adjusted gross margin declined 80 bps compared to Q1 FY21, primarily driven by higher input, freight, and conversion costs, partially offset by improvements in manufacturing productivity.
- Guidance: Elanco expects FY22 revenue of $4.70 billion - $4.76 billion, compared to prior guidance of $4.75 billion - $4.8 billion versus the analyst consensus of $4.77 billion.
- It expects adjusted EPS of $1.15 - $1.21 down from previous guidance $1.18 - $1.24 (consensus of $1.21).
- The company lowered adjusted EBITDA guidance to $1.12 billion - $1.16 billion vs. the previous outlook of $1.14 billion - $1.18 billion.
- For Q2 FY22, the company forecasts revenue of $1.16 billion - $1.20 billion versus the analyst consensus of $1.27 billion.
- It expects adjusted EPS of $0.22 - $0.28 (consensus of $0.34) and adjusted EBITDA of $245 million - $275 million.
- Price Action: ELAN shares are down 5.25% at $22.54 during the market session on the last check Monday.
