Elanco raises FY24 adjusted EPS view to 88c-96c from 87c-95c, consensus 92c

Narrows FY24 revenue view to $4.46B-$4.52B from $4.45B-$4.54B, consensus $4.5B. Narrows FY24 adjusted EBITDA view to $960M-$1B from $960M-$1.01B. The company said, “The company is updating 2024 financial guidance to reflect expectations for improved operational performance and additional unfavorable impact of foreign exchange rates compared to the February guidance. The company now anticipates revenue between $4,460 and $4,515 million, with an additional headwind of approximately $30 million from the unfavorable impact of foreign exchange rates compared to the February guidance, reflecting a $35 million headwind compared to the prior year. The updated guidance reflects expected constant currency revenue growth of 2% to 3%, up from 1% to 3% in February, with improved expectations in the U.S. farm animal and international pet health businesses, offset by expectations for reduced sales of Kexxtone, a European cattle product. Elanco has paused sales of Kexxtone while the manufacturing process is under review by the EU Committee for Veterinary Medicinal Products (CVMP), resulting in an expected reduction of approximately $20 million in revenue and approximately $18 million in adjusted EBITDA, compared to the February guidance.”