Elanco Animal Health Cuts FY22 Guidance After Q1 Earnings Beat Expectations Marginally - Elanco Animal Health (NYSE:ELAN)

Elanco Animal Health Inc ELAN has reported a Q1 EPS of $0.36, lower than the $0.37 reported a year ago, surpassing analysts' view of $0.35.
Revenue was $1.225 billion, a decrease of 1% YY, slightly above the consensus of $1.22 billion.
Pet Health's revenue decreased by 1% and was up 2% when excluding the unfavorable impact of foreign exchange rates.
Growth in Seresto, Credelio franchise, and Galliprant was partially offset by continued pressure on legacy parasiticide brands.
Farm Animal revenue decreased 2% and increased 1%, excluding foreign exchange rates' unfavorable impact.
Adjusted gross margin declined 80 bps compared to Q1 FY21, primarily driven by higher input, freight, and conversion costs, partially offset by improvements in manufacturing productivity.
Guidance: Elanco expects FY22 revenue of $4.70 billion - $4.76 billion, compared to prior guidance of $4.75 billion - $4.8 billion versus the analyst consensus of $4.77 billion.
It expects adjusted EPS of $1.15 - $1.21 down from previous guidance $1.18 - $1.24 (consensus of $1.21).
The company lowered adjusted EBITDA guidance to $1.12 billion - $1.16 billion vs. the previous outlook of $1.14 billion - $1.18 billion.
For Q2 FY22, the company forecasts revenue of $1.16 billion - $1.20 billion versus the analyst consensus of $1.27 billion.
It expects adjusted EPS of $0.22 - $0.28 (consensus of $0.34) and adjusted EBITDA of $245 million - $275 million.
Price Action: ELAN shares are down 5.25% at $22.54 during the market session on the last check Monday.

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