NYSE$ELAN

Elanco Animal Health Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Elanco's Q1 2020 results were impacted by the COVID-19 pandemic and actions taken with commercial distribution partners, but underlying business fundamentals remained strong.

Elanco Animal Health reported a decrease in total revenue for the first quarter of 2020, primarily due to actions taken to reduce channel inventory levels and the impact of the COVID-19 pandemic. Despite these challenges, the company's innovation, portfolio, and productivity strategy remained a focus, with strong demand in poultry and aqua, and encouraging recovery signs from China's swine industry.

  • COVID-19 pandemic created working capital pressures and dampened near-term demand assumptions.
  • Actions taken to tighten approach across distributor relationships and reduce channel inventory.
  • Underlying fundamentals remained strong, with clinic performance driven by internal teams and strong demand in poultry and aqua.
  • Bayer Animal Health transaction continues to advance, with an expected mid-2020 close.

Headline financials

Total Revenue

$658M

Previous: $731M-10.0%
EPS (adj)

$0.13

Previous: $0.25-48.0%
Capital Expenditures

-$12.6M

Previous: -$28M+55.0%
Free Cash Flow

-$61.7M

Previous: $3.5M-1862.9%
Net Income

-$49.1M

Previous: $31.5M-255.9%
Operating Income

-$780M

Previous: -$683M-14.2%
Gross Profit

$325M

Previous: $387M-16.1%
Cash & Equivalents

$1.21B

Previous: $272M+343.4%
Total Assets

$9.73B

Previous: $8.75B+11.2%
Stock-Based Comp

$11M

Previous: $7.7M+42.9%

Revenue & EPS history

Elanco · Revenue · Quarterly

$658M

Q1 2020-10%vs Q1 2019
Beat estimate in 9 of 10 quarters(90%)
ActualEstimate

Revenue by segment

Elanco · $1.58B total across 5 segments · Q3 2023

  • Farm Animal
    $561M
  • Pet Health
    $495M+5.1%
  • Cattle
    $242M+3.9%
  • Poultry
    $184M+15.7%
  • Swine
    $93M+10.7%

Forward guidance

Elanco withdrew its full-year 2020 guidance due to the uncertainty of the impact of COVID-19 on the business and operating environments. While leading indicators for products remain encouraging, the business has experienced pressure in April due to the pandemic's impact on customers.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+2.0%

Avg return

Earnings day

+2.8%

Avg return

5 days after

+1.1%

Avg return

30 days after

52%

16 / 31 earnings

Positive

+27.2%

Q1 2024

Best reaction

-16.3%

Q2 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+13.9%-5.6%+2.6%
Q4 2025+7.3%+6.7%-0.7%
Q3 2025-4.2%-1.0%-2.7%
Q1 2025+26.2%+34.8%+46.2%
Q4 2024-3.7%+0.5%-2.7%
Q3 2024+9.4%+9.8%-2.8%
Q2 2024+5.3%+12.6%+21.9%
Q1 2024+27.2%+25.7%+34.7%
Q4 2023+0.5%-2.1%-1.2%
Q3 2023+15.9%+14.1%+36.4%
Q2 2023+7.0%+4.5%+2.7%
Q1 2023-3.8%-8.4%-0.1%
Q4 2022-6.9%-11.0%-33.1%
Q3 2022-10.3%+0.4%-6.7%
Q2 2022-1.6%+3.3%-23.9%
Q1 2022-7.9%-6.4%+1.5%
Q4 2021+8.2%+12.4%+3.3%
Q3 2021+1.2%+0.3%-14.3%
Q2 2021-16.3%-12.3%-4.2%
Q1 2021+3.8%+3.4%+10.1%
Q4 2020+2.8%+9.0%-9.8%
Q3 2020-4.7%-8.0%-9.8%
Q2 2020+11.7%+17.3%+37.7%
Q1 2020-13.5%-12.9%+3.6%
Q4 2019-0.7%-1.4%-42.5%
Q3 2019-1.9%-3.1%-1.2%
Q2 2018-4.8%-1.3%-4.6%
Q2 2019-4.8%-1.3%-4.6%
Q1 2019+6.1%+3.9%+4.1%
Q4 2018-2.4%-1.7%-2.7%
Q3 2018+3.7%+3.7%-1.9%
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q1 2017

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