Elanco Animal Health's Q4 Earnings Beat Expectation, FY22 Sales Guidance Trail Estimates

Elanco Animal Health Inc ELAN has reported Q4 EPS of $0.21 higher than $0.12 reported a year ago, surpassing analysts' view of $0.17.

• Revenue was $1.11 billion, a decrease of 2% YY, unfavorably impacted by approximately $60 million of previously disclosed items that benefited Q4 FY20., beating the consensus of $1.10 billion.
• Pet Health's revenue decreased 1% and was flat when excluding the unfavorable impact from foreign exchange rates. 
• Price growth across the portfolio and volume growth was more than offset by the impact of competitive pressure on older generation parasiticides.
• Farm Animal revenue decreased 1% and was flat, excluding foreign exchange rates' unfavorable impact. 
• The gross margin improved from 47.7% to 54%, with 500 basis points attributable to the negative impact of the amortization of inventory fair value adjustments recorded from the acquisition of Bayer Animal Health in Q4 FY20.
• Guidance: Elanco expects FY22 revenue of $4.75 billion - $4.8 billion versus the analyst consensus of $4.86 billion.
• It expects adjusted EPS of $1.18 - $1.24 (consensus of $1.22) and adjusted EBITDA of $1.14 billion - $1.18 billion.
• For Q1 FY22, the company forecasts revenue of $1.2 billion - $1.23 billion versus the analyst consensus of $1.25 billion.
• It expects adjusted EPS of $0.33 - $0.38 (consensus of $0.37) and adjusted EBITDA of $310 million - $340 million.
• Price Action: ELAN shares closed lower by 0.89% at $25.75 on Wednesday.