Overview

* Elanco Q2 2025 revenue rises 5% yr/yr, beating analysts' expectations

* Adjusted EPS, net income and EBITDA also beat consensus

* Co raises full-year revenue guidance, improves net leverage ratio target

Outlook

* Elanco raises full-year revenue guidance to $4,570-$4,620 mln

* Company increases innovation revenue target by $60 mln to $720-$800 mln

* Elanco expects adjusted EBITDA of $850-$890 mln for 2025

* Company anticipates tailwind to revenue from favorable foreign exchange rates

Result Drivers

* PET HEALTH GROWTH - U.S. Pet Health revenue increased by 11%, driven by new products like Credelio Quattro, AdTab, and Zenrelia

* FARM ANIMAL RECOVERY - Farm Animal revenue decreased 2% due to aqua business sale but grew 6% organically, aided by accelerated purchases in China

* INNOVATION CONTRIBUTIONS - Innovation revenue target raised, reflecting contributions from Credelio Quattro, Experior, AdTab, and Zenrelia

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $1.24 $1.19

Revenue bln bln (10

Analysts

)

Q2 Beat $0.26 $0.2 (11

Adjusted Analysts

EPS )

Q2 EPS $0.02

Q2 Beat $131 mln $99.40

Adjusted mln (8

Net Analysts

Income )

Q2 Net $11 mln

Income

Q2 Beat $238 mln $214.30

Adjusted mln (10

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the pharmaceuticals peer group is "buy"

* Wall Street's median 12-month price target for Elanco Animal Health Inc ( ELAN ) is $17.00, about 17.9% above its August 6 closing price of $13.95

* The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)