Elanco Animal Health (ELAN 1.69%) stock bounced like a sprightly kitten this week. Shares leaped more than 11% higher during the period, according to data compiled by S&P Global Market Intelligence, on the back of encouraging quarterly results from the company.
Elanco notched a double beat in its third quarter
Elanco's third-quarter results were published on Tuesday, revealing that the very specialized healthcare company earned just under $1.07 billion in revenue. This was a 4% improvement over the same quarter of 2022. A slightly higher increase of 6% was reported with non-GAAP (adjusted) net income, which landed at $90 million, or $0.18 per share.
On average, analysts tracking Elanco stock were expecting less. Their consensus estimate for revenue was only $1.04 billion, while they significantly underestimated the company's adjusted net income with a projection of $0.12 per share.
In its earnings release, Elanco CEO Jeff Simmons said that his company's growth was due to "accelerating contribution from innovation, stabilizing core volumes, price growth and improved market conditions in Europe."
Net income guidance got a big change
Elanco also revised its full-year profitability guidance for the better, to put it mildly. It now believes it will post a headline net loss of $127 million to $170 million, which is far more advantageous than the $1.17 billion to $1.20 billion it previously estimated. The company also modified its range for revenue, with a new forecast of $4.35 billion to $4.41 billion for the year; it had formerly guided for $4.36 billion to $4.40 billion.
