- Elanco Animal Health (NYSE:ELAN) is trading ~2.4% lower in the pre-market on below-average volume after the company lowered its adjusted earnings forecast for 2021 with its Q2 2021 financials.
- However, Elanco’s Q2 financials managed to beat analyst expectations driven by the addition of Bayer Animal Health.
- Total revenue jumped ~118% YoY to $1.3B on a reported basis as legacy Elanco revenue in the second quarter stood at $750M indicating ~28% YoY growth while the legacy Bayer Animal Health business generated $529M in sales.
- Pet Health revenue rose ~170% YoY while farm animal revenue increased ~79% YoY. However, global Seresto revenue dropped ~1% YoY and global Advantage family revenue slumped ~3% YoY due to tough comps in the previous year’s quarter, the company said.
- The gross margin reached ~56.9% an increase of 740bps from Q2 2020. However, net loss expanded to $210M from $53M in the previous year’s quarter.
- In 2021, Elanco (ELAN) anticipates $65M – $85M in revenue from eight total product launches.
- Revenue and adjusted EPS for Q3 2021 are expected at $1.075 – $1.100B and $0.15 – $0.19, respectively in line with the guidance.
- For 2021, the company has raised its revenue guidance to $4.68 – $4.73B from $4.67 – $4.71B in the previous estimate. Adjusted EPS forecast at $0.97 – $1.03 stands lower than $1.00 – $1.06 in the prior update.
Additionally, Elanco (ELAN) announced that it received a subpoena from the U.S. SEC regarding its channel inventory and sales practices before mid-2020. “The company has cooperated in providing documents and information to the SEC and will continue to do so,” it added.
- The conference call on earnings is scheduled at 8:00 a.m. EST.
- Following an agreement to sell Shawnee facility in the U.K., Elanco (ELAN) said in June there would be no impact to 2021 adjusted EPS guidance despite the loss of $10M – $20M of contract manufacturing revenue.