GREENFIELD, Ind. - Elanco Animal Health (NYSE:ELAN) Incorporated (NYSE: ELAN) has reported a stronger-than-expected first quarter for 2024, with both earnings and revenue surpassing analyst estimates.
The company's adjusted earnings per share (EPS) came in at $0.34, exceeding the analyst consensus of $0.26. Revenue also topped expectations, reaching $1.21 billion against the predicted $1.18 billion.
The company's performance has prompted a positive market response, with Elanco's stock price jumping 4.3% following the announcement. This investor enthusiasm is largely attributed to the company's financial results beating market expectations.
In comparison to the same quarter last year, Elanco's revenue saw a decline, which the company attributes to the impact of an ERP Blackout in 2023 that shifted approximately $90 to $110 million in revenue from the second quarter into the first quarter of that year. Despite this, Elanco's first-quarter revenue growth, excluding the ERP blackout impact, was estimated at 3% to 5%.
Elanco's President and CEO, Jeff Simmons, highlighted the company's robust business momentum, driven by a diverse portfolio and balanced geographic presence.
"We delivered estimated revenue growth of 3% to 5% in the first quarter, excluding the impact of the ERP blackout from last year, and exceeded the top end of our guidance range for revenue, adjusted EBITDA, and adjusted EPS in the quarter," said Simmons.
He also noted the company's increased new product sales expectations and innovation, which have strengthened the durability of Elanco's base portfolio with customers.
Looking ahead, Elanco has updated its full-year 2024 financial guidance to reflect the first-quarter outperformance and the expected unfavorable impact of foreign exchange rates.
The company now anticipates full-year revenue to be between $4.46 and $4.51 billion, with adjusted EPS forecasted at $0.88 to $0.96. These projections compare favorably to the consensus estimates of $4.49 billion in revenue and $0.92 adjusted EPS.
For the second quarter of 2024, Elanco expects adjusted EPS to be in the range of $0.23 to $0.26, with revenue predictions between $1.14 and $1.17 billion. These figures are in line with consensus estimates of $0.24 adjusted EPS and $1.16 billion in revenue.
Elanco's financial results reflect the company's resilience and strategic focus on innovation and operational efficiency. With a strong start to the year, Elanco is well-positioned to continue delivering value to its stakeholders and maintaining its trajectory of growth.
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