Animal health company Elanco (NYSE: ELAN) will be reporting results this Friday before market hours. Here’s what to expect.
Elanco beat analysts’ revenue expectations last quarter, reporting revenues of $1.37 billion, up 10.2% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and a solid beat 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 6.1% year on year, slowing from the 10.4% increase 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 will 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 Q3 results, giving us a hint as to what we can expect. Jazz Pharmaceuticals delivered year-on-year revenue growth of 10.4%, beating analysts’ expectations by 2.8%, and Eli Lilly reported revenues up 38.6%, topping estimates by 7.9%. Jazz Pharmaceuticals traded up 7.1% following the results while Eli Lilly was also up 10%.
Read our full analysis of Jazz Pharmaceuticals’s results here and Eli Lilly’s results here.
There has been positive sentiment among investors in the pharmaceuticals segment, with share prices up 9.1% on average over the last month. Elanco is up 10.5% during the same time and is heading into earnings with an average analyst price target of $30.23 (compared to the current share price of $24.84).
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