Intraday Mover: Elanco Animal Health Incorporated (NYSE: ELAN)

On 06 March 2019, Elanco Animal Health Incorporated (NYSE: ELAN) shares price traded between $29.28 and $30.44 during the last trading session upbeat/downbeat with -2.50% at $29.70. Over the one year trading period, the stock has a peak price of $37.61 and its down is recorded at $28.00.

Elanco Animal Health Incorporated (ELAN), recently stated global revenue for full year 2018 raised 6 percent to $3.1B. For the fourth quarter of 2018, global revenue also grew 6 percent to $799.3M. The results reflect strong volume growth and the execution of the company’s targeted, three-pillar strategy focused on Portfolio, Innovation and Productivity. The results also reflect strong full year performance in its three targeted growth categories: Companion Animal Disease Prevention, Companion Animal Therapeutics and Food Animal Future Protein & Health.

Fourth Quarter Key Events:

Innovation

  • Our portfolio of innovation releasedsince 2015 accounted for $69.8M in revenue, up $29.7M or 74 percent over the same quarter last year.
  • Experior: Received U.S. authorization for Experior, a first-of-its-kind product for the reduction of ammonia gas emission in cattle. This authorization marked Elanco’s fourth consecutive year since 2015 of securing three key new product authorization s.
  • Imvixa: Met with the Norwegian Medicines Agency and have agreed on the path forward for submission of Imvixa, a novel treatment for sea lice in salmon.
  • Credelio: Released Credelio, our innovative oral flea and tick treatment for cats in Europe.

Portfolio

  • As a group, the targeted growth categories in Elanco’s portfolio – Companion Animal Disease Prevention, Companion Animal Therapeutics and Food Animal Future Protein & Health grew 20 percent on a constant currency basis, representing 60 percent of Elanco’s total business.
  • Interceptor Plus reached blockbuster status, exceeding $100M in yearly sales for the first time.

Fourth Quarter Stated Results:

In the fourth quarter of 2018, global revenue was $799.3M, an raise of 6 percent contrast to the fourth quarter of 2017. Revenue, not including planned exits, raised 6 percent to $774.7M. Gross margin, as a percent of revenue, raised 200 basis points to 48 percent. Tax expense was a benefit of $18.6M in the fourth quarter of 2018. Net income for the fourth quarter raised $177.9M to $16.4M, or $0.04 per basic share.

Companion Animal Disease Prevention revenue raised 43 percent for the quarter, primarily driven by volume and raised price partially offset by an unfavorable impact from foreign exchange. Revenue growth improved in comparison to previous year Because of a reduction in channel inventory in the fourth quarter of 2017. Growth was also driven by continued uptake in demand for Interceptor Plus and Credelio, and raised sales of certain vaccines from new consumer contracts. Parastar® contributed exclusive growth in the quarter as we entered into a one-time contract to sell all remaining inventory.

Companion Animal Therapeutics revenue reduced 6 percent for the quarter, driven by reduced volume and an unfavorable impact from foreign exchange, partially offset by raised price. The revenue decrease was influenced by both timing and availability of Galliprant® shipments. A planned shipment in late 2018 was delayed until early 2019 to appropriately complete the quality release process. In addition, market demand for Galliprant continues to grow, exceeding supply capacity and resulting in Galliprant backorders at the end of the year. Elanco is working diligently to expand production and expects to clear remaining backorders by late first quarter or early second quarter 2019.

Full Year Stated Results

For the full-year 2018, global revenue raised 6 percent, to $3.1B, contrast with $2.9B for the full-year 2017. Stated net income and earnings per share were $86.5M and $0.28, respectively.

Fourth Quarter Consolidated non-GAAP Results:

Adjusted net income for the fourth quarter raised 148 percent to $105.4M, which excludes the net impact of $128.0M of asset impairments, restructuring and other special charges, the amortization of intangible assets, and adjustments related to contingent consideration for Aratana, net of the impact from taxes. Adjusted EPS for the quarter was $0.29 per diluted share. Adjusted EBITDA margin was 21 percent, an raise of 400 basis points primarily driven by raised gross margin and a reduction in operating expenses.

For further detail of non-GAAP measures, see the Reconciliation of GAAP Stated to Selected Non-GAAP Adjusted Information table later in this press release.

Full Year Non-GAAP Measures

For the full-year 2018, net income and earnings per share, on an Adjusted non-GAAP basis, were $431.8M and $1.18 per diluted share, respectively.

“Moving into 2019, we have a compelling value proposition, supported by our financial expectations for the year. The combination of our revenue growth, the positive impact of our ongoing productivity agenda and the consistent flow of innovation we’ve created will continue to result in our ability to deliver consistent value to shareholders,” stated Simmons.

EPS growth for this year is 128.60% and EPS growth for next year is expected to reach at 19.06%. EPS growth in past five years was -12.50% while EPS growth in next five years is projected to arrive at 12.37%. Sales growth past 5 years was measured at 9.70%.

Leave a Reply

Your email address will not be published. Required fields are marked *