What Happened?

Shares of animal health company Elanco (NYSE: ELAN) jumped 21.2% in the afternoon session after the company reported decent first quarter 2025 results which beat analysts' EPS expectations and included constant currency revenue outperformance. Organic sales were up 4%, thanks to strong demand in cattle health and good traction from new pet meds like Credelio Quattro. Even though sales were flat, operating margins improved, a sign they're managing prices and costs pretty well. 

On the other hand, its full-year EBITDA guidance missed. Overall, we think this was a decent quarter with some key metrics above expectations.

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What The Market Is Telling Us

Elanco’s shares are quite volatile and have had 16 moves greater than 5% over the last year. But moves this big are rare even for Elanco and indicate this news significantly impacted the market’s perception of the business.

Elanco is down 4.4% since the beginning of the year, and at $11.51 per share, it is trading 37.6% below its 52-week high of $18.45 from June 2024. Investors who bought $1,000 worth of Elanco’s shares 5 years ago would now be looking at an investment worth $579.58.

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