Elanco Animal Health Slips To Loss In Q2

(RTTNews) - Elanco Animal Health Inc. (ELAN) reported that its net loss for the second quarter of 2020 was $53.2 million or $0.13 per share, compared to net income of $35.9 million, or $0.10 per share, for the same period in 2019, reflecting the reduction of channel inventory and lower levels of demand resulting from the COVID-19 pandemic.

Quarterly revenue was $586.3 million, a decrease of 25 percent, or a decrease of 23 percent without the impact of foreign exchange rates, compared with the second quarter of 2019. Revenue, excluding strategic exits, was $570.4 million, a decrease of 22 percent without the impact of foreign exchange rates.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.06 per share and revenues of $589.43 million for the quarter. Analysts' estimates typically exclude special items.

Elanco Animal said that Bayer Animal Health acquisition remains on track to close at the beginning of August. The Antitrust, financing, and pre-close integration milestones are complete.

For the third quarter of 2020, legacy Elanco Total Revenue is expected to be between $660 and $710 million. Core Revenue, excluding Strategic Exits, is expected to be between $650 and $700 million, including our estimate of approximately $30 to $50 million in COVID-19 related headwinds.

Elanco said it will divest a limited number of products in conjunction with the close of the Bayer Animal Health transaction. Revenue from divested products is expected to represent between $12 and $20 million for two months of the quarter and has been excluded from the total Revenue and Core Revenue estimates.