NYSE$ELAN

Elanco Animal Health Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Elanco's Q4 2023 performance showed revenue growth driven by the farm animal business and price increases, though adjusted EBITDA was impacted by unexpected items.

Elanco Animal Health reported a 5% increase in revenue to $1,035 million for Q4 2023, driven by its farm animal business, innovation revenue, and price growth. However, the company experienced a net loss of $141 million, and adjusted EBITDA was adversely affected by unexpected items, including the devaluation of the Argentinian peso.

  • Elanco's Q4 2023 revenue reached $1,035 million, marking a 5% increase year-over-year.
  • The company reported a net loss of $141 million, with adjusted net income at $39 million.
  • Adjusted EBITDA stood at $165 million, representing 15.9% of revenue.
  • Strategic restructuring announced to reallocate resources and improve efficiency.

Headline financials

Total Revenue

$1.04B

Previous: $988M+4.8%
EPS (adj)

$0.08

Previous: $0.19-57.9%
Capital Expenditures

$41M

Previous: $66M-37.9%
Free Cash Flow

$116M

Previous: -$53M+318.9%
Net Income

-$141M

Previous: -$54M-161.1%
Operating Income

-$127M

Previous: $157M-180.9%
Gross Profit

$519M

Previous: $540M-3.9%
R&D Expense

$79M

No prior period
Stock-Based Comp

$15M

Previous: $15M+0.0%

Revenue & EPS history

Elanco · Revenue · Quarterly

$1.04B

Q4 2023+4.8%vs Q4 2022
Beat estimate in 10 of 15 quarters(67%)
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 provided financial guidance for the full year 2024, anticipating revenue between $4,450 million and $4,540 million and adjusted EPS between $0.87 and $0.95.

Tailwinds

  • Revenue between $4,450 million and $4,540 million
  • Constant currency revenue growth of 1% to 3%
  • Growth expected in both pet health and farm animal
  • Adjusted EBITDA between $960 million and $1,010 million
  • Adjusted EPS between $0.87 and $0.95

Headwinds

  • A headwind of approximately $5 million from the unfavorable impact of foreign exchange rates
  • Slight decline in gross margin
  • Operating expenses are expected to increase 2% to 4%
  • Decline in the first half the year and increase in the second half of the year for both adjusted EBITDA and adjusted EPS
  • Guidance does not consider contribution from expected launches of new products

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 Q4 2023

Historical avgQ4 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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