Animal health company Elanco (NYSE:ELAN) will be announcing earnings results tomorrow before market open. Here’s what to look for.
Elanco missed analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $1.03 billion, down 3.6% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EPS estimates but EBITDA guidance for next quarter missing analysts’ expectations.
Is Elanco a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Elanco’s revenue to decline 2.5% year on year to $1.01 billion, a reversal from the 5.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.15 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Elanco has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Elanco’s peers in the pharmaceuticals segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Pfizer delivered year-on-year revenue growth of 21.9%, beating analysts’ expectations by 3%, and Eli Lilly reported revenues up 44.7%, in line with consensus estimates. Pfizer’s stock price was unchanged after the results, while Eli Lilly was up 4.2%.
Read our full analysis of Pfizer’s results here and Eli Lilly’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the pharmaceuticals stocks have shown solid performance, the group has generally underperformed, with share prices down 5.3% on average over the last month. Elanco is down 8.7% during the same time and is heading into earnings with an average analyst price target of $16.75 (compared to the current share price of $11.02).
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