Elanco Animal Health Again Cuts Annual Guidance After Mixed Q2 Earnings - Elanco Animal Health (NYSE:ELAN)

Elanco Animal Health Inc ELAN has reported a Q2 adjusted EPS of $0.36, higher than the $0.28 reported a year ago, surpassing analysts' view of $0.25.
Revenue was $1.177 billion, a decrease of 8% Y/Y on a reported basis, or down 4%, excluding the unfavorable impact of foreign exchange rates, almost in line with the consensus of $1.18 billion.
Pet Health's revenue decreased by 11% (-7% CER) to $612 million, with a 1% increase in price partially offset by rebate and in-store marketing programs, primarily in the U.S. retail business.
Farm Animal revenue decreased 2% (+3% CER) as Rumensin sales were partially offset by pressured economics for swine and poultry producers in China and a decline for swine in Europe.
Adjusted gross margin improved by 190 bps compared to 58.9%.
Guidance: Elanco expects FY22 revenue of $4.46 - $4.55 billion, down from previous guidance of $4.70 - $4.76 billion and the consensus of $4.69 billion.
It expects adjusted EPS of $1.06-$1.13, down from previous guidance of $1.15 - $1.21 (consensus of $1.14).
The company lowered adjusted EBITDA guidance to $1.06-$1.1 billion vs. the previous outlook of $1.12 - $1.16 billion.
For Q3, the company forecasts revenue of $1.01-$1.06 billion, below the consensus of $1.14 billion.
It expects adjusted EPS of $0.12 - $0.18 (consensus of $0.26) and adjusted EBITDA of $175 million - $215 million.
Price Action: ELAN shares are up 3.60% at $20.14 during the premarket session on the last check Monday.