Overview

• US animal health firm's Q1 revenue rose 15%, beating analyst expectations

• Adjusted EPS for Q1 beat consensus, driven by innovation and growth across all major species

• Company raised full-year revenue and adjusted EPS guidance on strong Q1 performance

Outlook

• Elanco raises full-year revenue guidance to $5,010 mln-$5,085 mln, up from prior forecast

• Company lifts full-year adjusted EPS outlook to $1.03-$1.09

• Elanco expects Q2 revenue of $1,300 mln-$1,325 mln and adjusted EPS of $0.25-$0.28

Result Drivers

• INNOVATION AND NEW PRODUCTS - Growth driven by new products such as Zenrelia and Credelio Quattro, which achieved strong market share gains and expanded into new markets

• VOLUME AND NEW CUSTOMERS - Volume growth supported by new retail customers for parasiticides and increased demand across all species

• PRICE INCREASES - Revenue benefited from price increases in both Pet Health and Farm Animal segments, in line with company expectations

Company press release: ID:nPn5pdb7la

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the pharmaceuticals peer group is "buy"

• Wall Street's median 12-month price target for Elanco Animal Health Inc is $30.00, about 30.5% above its May 5 closing price of $22.99

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 23 three months ago

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