Animal health company Elanco (NYSE: ELAN) will be reporting earnings this Tuesday before market open. Here’s what you need to know.
Elanco beat analysts’ revenue expectations last quarter, reporting revenues of $1.14 billion, up 10.4% year on year. It was a satisfactory quarter for the company, with a beat of analysts’ EPS estimates but a significant miss of analysts’ EPS guidance for next quarter estimates.
Is Elanco a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Elanco’s revenue to grow 7.1% year on year, a reversal from the 1.4% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Elanco rarely misses Wall Street’s revenue estimates.
Looking at Elanco’s peers in the pharmaceuticals segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Ocular Therapeutix’s revenues decreased 22.4% year on year, missing analysts’ expectations by 11%, and Eli Lilly reported revenues up 42.6%, topping estimates by 7.4%. Ocular Therapeutix traded up 7.1% following the results while Eli Lilly was also up 1.7%.
Read our full analysis of Ocular Therapeutix’s results here and Eli Lilly’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the pharmaceuticals stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.4% on average over the last month. Elanco is up 1.2% during the same time and is heading into earnings with an average analyst price target of $26.23 (compared to the current share price of $24.98).
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