Elanco Animal Health beats Q3 revenue estimates on pet health demand, raises FY outlook
Overview
Animal health company's Q3 revenue rose 11%, beating analyst expectations
Adjusted EPS for Q3 beat consensus, driven by pet health demand and margin expansion
Company raised full-year revenue and adjusted EPS guidance on strong Q3 performance
Outlook
Elanco raises 2026 revenue guidance to $5.155 bln-$5.18 bln, up from prior $5.09 bln-$5.14 bln
Company lifts 2026 adjusted EPS guidance to $1.17-$1.20, from previous $1.10-$1.16
Elanco expects 2027 results in line with mid-single digit organic revenue growth and low-double digit adjusted EPS growth
Result Drivers
PET HEALTH DEMAND - Strong veterinarian and pet owner demand for innovation products, particularly Zenrelia and Credelio Quattro, drove growth in U.S. and international pet health segments
PRICE INCREASES - Accelerated price growth of 4% contributed to revenue gains, exceeding company expectations
GROSS MARGIN EXPANSION - Adjusted gross margin rose 300 basis points, primarily due to increased pricing and favorable product mix from strong U.S. Pet Health and global ruminants performance
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $1.27 bln | $1.21 bln (11 Analysts) |
Q3 Adjusted EPS | Beat | $0.27 | $0.20 (13 Analysts) |
Q3 EPS | $0.04 | ||
Q3 Adjusted Net Income | Beat | $136 mln | $102.28 mln (9 Analysts) |
Q3 Net Income | $18 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the pharmaceuticals peer group is "buy"
Wall Street's median 12-month price target for Elanco Animal Health Incorporated is $30.00, about 26.7% above its November 5 closing price of $23.68
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 23 three months ago
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)