NYSE$ELAN

Elanco Animal Health Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Elanco's Q1 2023 earnings were released, showing revenue increase driven by ERP system integration and improved business conditions, while raising the bottom-end of guidance for the full year 2023.

Elanco Animal Health reported a 3% increase in revenue to $1,257 million for Q1 2023, driven by customer purchases shifting from Q2 due to ERP integration. The company raised the bottom end of its full-year guidance, reflecting confidence in U.S. Pet Health and international poultry businesses.

  • Revenue increased by 3% on a reported basis, or 6% excluding the unfavorable impact from foreign exchange rates.
  • Pet Health revenue increased by 5%, driven by price, but impacted by supply constraints and competition.
  • Farm Animal revenue increased by 1%, driven by strength in Europe and Asia, offset by poultry rotations and supply constraints.
  • The company estimates adjusted EPS in the first quarter includes a $0.11 to $0.14 benefit from the ERP Blackout.

Headline financials

Total Revenue

$1.26B

Previous: $1.23B+2.6%
EPS (adj)

$0.45

Previous: $0.36+25.0%
Capital Expenditures

-$20M

Previous: -$19M-5.3%
Free Cash Flow

$83M

Previous: $29M+186.2%
Net Income

$103M

Previous: $48M+114.6%
Operating Income

-$1.12B

Previous: -$1.12B+0.1%
Gross Profit

$763M

Previous: $716M+6.6%
Cash & Equivalents

$318M

Previous: $342M-7.0%
Total Assets

$15.8B

Previous: $16.3B-3.0%
Stock-Based Comp

$12M

Previous: $14M-14.3%

Revenue & EPS history

Elanco · Revenue · Quarterly

$1.26B

Q1 2023+2.6%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Elanco · $1.1B total across 4 segments · Q1 2023

  • Pet Health
    $675M+5.6%
  • Poultry
    $228M
  • Cattle
    $124M-78.2%
  • Swine
    $72M

Forward guidance

Elanco is updating financial guidance for the full year 2023, driven by the successful completion of the ERP system integration, innovation progress, and increased confidence in the company’s U.S. Pet Health and international poultry businesses.

Tailwinds

  • Successful completion of the ERP system integration
  • Innovation progress
  • Increased confidence in the company’s U.S. Pet Health business
  • Increased confidence in the company’s international poultry businesses
  • Raising the bottom end of its full year 2023 guidance for revenue

Headwinds

  • Impact of foreign exchange is now expected to be a headwind of approximately $20 million to $25 million
  • Second quarter revenue guidance accounts for an estimated $90 million to $110 million in customer purchases shifted from the first quarter
  • Second quarter adjusted EPS is expected to be impacted from headwinds from higher interest expense
  • Second quarter adjusted EPS is expected to be impacted from headwinds from taxes
  • Second quarter adjusted EPS is expected to be impacted from headwinds from unfavorable foreign exchange rates

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 2023

Historical avgQ1 2023

+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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