Animal health company Elanco (NYSE: ELAN) will be reporting results tomorrow before market hours. Here’s what to look for.
Elanco beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $1.02 billion, down 1.4% year on year. It was a slower quarter for the company, with a significant miss of analysts’ full-year EPS guidance estimates and a miss of analysts’ EPS estimates.
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 3.3% year on year to $1.16 billion, in line with the 4.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.30 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 three times over the last two years.
Looking at Elanco’s peers in the pharmaceuticals segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Bristol-Myers Squibb’s revenues decreased 5.6% year on year, beating analysts’ expectations by 3.9%, and Organon reported a revenue decline of 6.7%, topping estimates by 0.6%. Bristol-Myers Squibb traded down 1.3% following the results while Organon was also down 25.8%.
Read our full analysis of Bristol-Myers Squibb’s results here and Organon’s results here.
There has been positive sentiment among investors in the pharmaceuticals segment, with share prices up 3.7% on average over the last month. Elanco is up 10.9% during the same time and is heading into earnings with an average analyst price target of $13.86 (compared to the current share price of $9.91).
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