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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

Elanco Animal Health Reports on Q3

11/12/2020

On November 6th Elanco Animal Health (ELAN) reported on the third quarter of Fiscal 2020 ending September 30th. For the period, the company posted a net loss of $135 million on sales of $889.6 million with a negative EPS of $(0.29).  Approximately 22 percent of revenue was derived from the Bayer acquisition.  About 52 percent of revenue was derived from food, 45 percent from companion animals, and the remainder from contract manufacturing.

 

Expenses during the quarter included asset impairment of $262 million and amortization of intangible assets of $95 million.

 

In commenting on the quarter Jeff Simmons, President and CEO, noted “We closed the industry’s largest acquisition and moved with speed and decisiveness to integrate the Bayer Animal Health business.”  Simmons added, “In the third quarter, Elanco executed with discipline and urgency to deliver on our stated expectations for the quarter.”  Management offered guidance for revenue in Q4 ranging from $1.02 billion to $1.06 billion.

 

Elanco Animal Health has a market capitalization of $14.3 billion and has traded over a 52-week range of $15.17 to $34.09 with a 50-day moving average of $30.02. 

 

Prior to release of the Q3 report, ELAN closed on November 5th at $32.63, but opened the following morning post-release at $29.39.  Operating margin over the trailing 12 months is 7.6 percent and profit margin  of negative 3.6 percent.  ELAN generated a return on assets of 1.4 percent and negative 1.7 percent on equity.

 


 
Copyright © 2020 Simon M. Shane