ELAN Earnings Prediction
The chart below shows how ELAN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ELAN sees a +0.22% change in stock price 10 days leading up to the earnings, and a -1.30% change 10 days following the report. On the earnings day itself, the stock moves by +2.75%. This data can give you a slight idea of what to expect for the next quarter's release.
ELAN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.03B
-3.56%
-13.01%
Gross Margin
39.32%
-4.77%
-16.57%
Operating Margin
-0.49%
-112.47%
-105.05%
Net Margin
35.34%
134.44%
-937.44%
EPS
0.73
132.88%
-830.00%
No Data Available
ELAN Earnings Analysis
Elanco Animal Health Incorporated Common Stock Corporation (ELAN.N) Earnings Conference Call
Positive
Sustained Revenue Performance: 1. Consistent Revenue Growth: Elanco achieved organic constant currency revenue growth of 1% in Q3 2024, marking the fifth consecutive quarter of growth in its underlying business, with expectations of 3% growth in 2024.
Product Launch Impact: 2. Strong Product Launches: The company received U.S. FDA approval for Zenrelia and Credelio Quattro, with anticipated contributions to revenue growth in 2025, particularly in the pet health market.
Debt Paydown Strategy: 3. Debt Reduction: Elanco paid down $1.3 billion of debt in Q3 2024, reducing net leverage from mid-5x to mid-4x, demonstrating a strong commitment to improving its financial position.
Innovation Sales Forecast: 4. Innovation Sales Increase: Elanco raised its expectations for innovation sales in 2024 to a range of $420 million to $450 million, driven by strong performance from products like Experior, AdTab, and Credelio Plus.
Strong Operational Efficiency: 5. Positive Cash Flow: The company reported cash provided by operations of $162 million in Q3 2024, with year-to-date operating cash improving by $250 million, indicating strong operational efficiency.
Negative
Pet Health Revenue Decline: 1. Decline in U.S. Pet Health Revenue: U.S. Pet Health revenue declined 4% in Q3 2024, primarily due to competitive pressure and vaccine supply volatility, contributing an estimated 12 percentage points to the decline.
Gross Margin Decline: 2. Gross Margin Compression: Gross margin decreased by 230 basis points to 52.2% of revenue, driven by the impact of the Aqua divestiture on product mix, inflation, and unfavorable manufacturing performance.
EBITDA Decline Analysis: 3. Adjusted EBITDA Decrease: Adjusted EBITDA was $163 million, a decrease of $51 million year-over-year, reflecting a significant decline in profitability amid ongoing operational challenges.
U.K. CMO Insolvency Impact: 4. Headwinds from U.K. CMO Insolvency: The insolvency of a key contract manufacturing organization in the U.K. is expected to create a $25 million to $35 million headwind to adjusted EBITDA in 2025, primarily affecting gross profit.
Declining Pet Health Revenue: 5. Lowered Expectations for U.S. Pet Health Parasiticide Revenue: Despite new product launches, expectations for U.S. pet health parasiticide revenue have decreased, indicating ongoing challenges in returning this segment to growth.
ELAN FAQs
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ELAN Earning Call Sentiment
Elanco Animal Health Incorporated (ELAN) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
ELAN.N
-0.61%Positive
The earnings call summary presents mixed signals. While innovation launches and debt repayment are positive, supply chain challenges and economic factors in the U.S. swine industry pose risks. The Q&A session confirms positive reception of new products like Zenrelia but also highlights concerns about gross margins and operating leverage. The guidance remains unchanged, suggesting stability but not strong growth. The lack of specific guidance on the CMO impact and operating leverage in 2025 adds uncertainty. Overall, these mixed factors suggest a neutral stock price movement in the short term.
