Elanco Animal Health Lifts 2021 Outlook

Elanco Animal Health Inc. (ELAN) raised and tightened its full year 2021 guidance for revenue, and adjusted earnings per share, compared to the prior guidance.

The company's outlook reflects positive momentum in the business following a strong first quarter of 2021 as well as favorable currency translation now anticipated to provide a $20 million to $30 million tailwind, partly offset by a modest increase in operating expenses as a percentage of revenue with investments in strategic commercial opportunities, increased legal expenditures, and the impact of foreign exchange.

Looking ahead for fiscal year 2021, the company now projects loss per share to be in the range of $0.26 - $0.35, adjusted earnings per share of $1.00 - $1.06, and revenue of $4.68 billion - $4.73 billion. Previously, the company expected loss per share to be in the range of $0.20 - $0.30, adjusted earnings per share of $0.90 - $1.00 , and revenues of $4.55 billion - $4.63 billion.

Analysts polled by Thomson Reuters expect the company to report earnings of $0.95 per share and revenues of $4.6 billion for fiscal year 2021. Analysts' estimates typically exclude special items.

For the second-quarter, the company expects earnings per share to be in the range of $0.22 - $0.27, and revenue of $1.225 billion - $1.255 billion. Analysts expect the company to report earnings of $0.25 per share and revenues of $1.16 billion for the second-quarter.

The company currently anticipates that the first half of the year will represent approximately 53% of full year 2021 revenue and about 60% of full year 2021 adjusted earnings per share, reflective of typical seasonality in Elanco's higher-margin parasiticide products more than offsetting innovation gaining traction in the second half of 2021.

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