GREENFIELD, Ind. - Elanco Animal Health (NYSE:ELAN) Incorporated (NYSE: ELAN) reported a mixed fourth quarter with earnings slightly missing analyst expectations. The company announced a Q4 adjusted EPS of $0.08, which was $0.02 below the analyst estimate of $0.10.
Revenue, however, for the quarter was robust at $1.04 billion, exceeding the consensus estimate of $1 billion and representing a 5% growth compared to the same quarter last year.
Elanco's performance in the fourth quarter was primarily driven by a 10% increase in farm animal revenue, which reached $610 million, and was supported by price growth and innovation revenue. Despite a slight 1% decrease in pet health revenue, the company's overall revenue growth indicates a positive momentum, as noted by President and CEO Jeff Simmons.
Looking ahead, Elanco provided its full-year 2024 guidance, projecting an adjusted EPS range of $0.87 to $0.95, which is above the consensus estimate of $0.89. The company also expects full-year 2024 revenue to be between $4.45 and $4.54 billion, aligning with the consensus of $4.51 billion. This guidance includes contributions from the company's aqua business and does not account for the expected launches of three blockbuster-potential products.
Elanco's strategic restructuring, which impacts approximately 420 personnel, is anticipated to generate significant annualized savings that the company plans to reinvest in higher-value opportunities.
Simmons expressed confidence in Elanco's investments for 2024, emphasizing their role in laying the foundation for sustained revenue growth over the medium and long term. Executive Vice President and CFO Todd Young highlighted the company's focus on improving earnings potential and reducing leverage, with expectations to end 2024 with net debt to adjusted EBITDA in the mid-4x range.
Elanco's financial health and strategic initiatives appear to be steering the company towards a stable path of growth and efficiency, with a clear focus on enhancing shareholder value through careful management of expenses and investment in growth opportunities.
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