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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowElanco Animal Health said Tuesday morning that first-quarter earnings more than doubled, and it raised the bottom end of its full-year guidance.
The Greenfield-based maker of pet and farm animal health products reported net income of $103 million, up 102%. After adjusting for one-time charges, earnings before interest, taxes, depreciation and amortization were $379 million, up 12%.
The company reported earnings per share of 45 cents, handily beating Wall Street’s estimate of 29 cents. Elanco shares soared by about 9% Tuesday in premarket trading, to $9.36.
Revenue climbed 3% to $1.26 billion, helped by customers shifting purchases for legacy Bayer products from the second quarter into the first quarter as a result of commercial shipping blackout periods in April resulting from the company’s system integration. Without that benefit, Elanco said estimated a revenue decline of between 1% to 3% in the underlying business.
The company raised the bottom end of the guidance range for key metrics, with revenue now expected to be flat to down 2%.
Since February, the company has launched four new products, received three approvals in major markets and initiated the submission of a new short-acting antibody for dermatology.
“Elanco delivered sequentially improved underlying business performance in the first quarter driven by recovering business conditions and actions we have taken to strengthen our commercial positioning, notably in U.S. Pet Health driven by improved share of voice, physical availability, price and innovation,” CEO Jeff Simmons said in written remarks.
Pet health revenue was $675 million, a 5% increase compared to the same period a year ago. Farm animal revenue was $573 million, an increase of 1%. Contract manufacturing was $9 million, a decrease of 47%.
The company reported asset impairment, restructuring and other special charges at $40 million, primarily related to costs associated with the implementation of new systems, programs and processes due to the integration of Bayer Animal Health, which it bought in 2020 for $6.9 billion.
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