Elanco Animal Health (ELAN) reported earnings on Wed 6 Feb 2019 (b/o)

** charts before earnings **

** charts after earnings **

Elanco Animal Health beats by $0.02, reports revs in-line; reaffirms FY19 EPS, revs guidance

• Reports Q4 (Dec) earnings of $0.29 per share, excluding non-recurring items, $0.02 better than the S&P Capital IQ Consensus of $0.27; revenues rose 6.0% year/year to $799.3 mln vs the $804.07 mln S&P Capital IQ Consensus.
• Gross margin, as a percent of revenue, was 48 percent, an increase of 200 basis points period over period. The gross margin increase was primarily due to favorable product mix and non-recurring costs in 2017 associated with the unwinding of purchase accounting inventory adjustments, partially offset by 200 basis points of unfavorable impact from foreign exchange rates.
• Co reaffirms guidance for FY19, sees EPS of $1.02-1.12, excluding non-recurring items, vs. $1.10 S&P Capital IQ Consensus; sees FY19 revs of $3.1-3.16 bln vs. $3.15 bln S&P Capital IQ Consensus.