Animal health company Elanco (NYSE: ELAN) will be reporting earnings this Wednesday before market hours. Here’s what investors should know.
Elanco beat analysts’ revenue expectations by 4.7% last quarter, reporting revenues of $1.24 billion, up 4.8% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ constant currency revenue estimates and a beat of analysts’ EPS estimates.
Is Elanco a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Elanco’s revenue to grow 6.1% year on year to $1.09 billion, a reversal from the 3.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.13 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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.4% on average.
Looking at Elanco’s peers in the pharmaceuticals segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Eli Lilly delivered year-on-year revenue growth of 53.9%, beating analysts’ expectations by 9.6%, and Bristol-Myers Squibb reported revenues up 2.9%, topping estimates by 3.7%. Eli Lilly traded up 6% following the results while Bristol-Myers Squibb was also up 8.1%.
Read our full analysis of Eli Lilly’s results here and Bristol-Myers Squibb’s results here.
Investors in the pharmaceuticals segment have had steady hands going into earnings, with share prices flat over the last month. Elanco is up 10.6% during the same time and is heading into earnings with an average analyst price target of $21.55 (compared to the current share price of $22.85).
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