Benzinga | May 6, 2021 10:10AM EDT

Earnings Preview for Elanco Animal Health

Elanco Animal Health (NYSE:ELAN) will be releasing its next round of earnings this Friday, May 07. For all of the relevant information, here is your guide for Friday's Q1 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Sell-side analysts expect Elanco Animal Health's EPS to be near $0.23 on sales of $1.16 billion. In the same quarter last year, Elanco Animal Health announced EPS of $0.13 on revenue of $657.70 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to post earnings in line with the consensus estimate when it reports Friday, EPS would be up 76.92%. Sales would be have grown 76.37% from the same quarter last year. Elanco Animal Health's reported EPS has stacked up against analyst estimates in the past like this: Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 0.09 0.12 0.06 0.23EPS Actual 0.12 0.13 0.09 0.13Revenue Estimate 1.06 B 909.34 M 593.57 M 714.97 MRevenue Actual 1.14 B 889.60 M 586.30 M 657.70 M

Stock Performance

Shares of Elanco Animal Health were trading at $31.12 as of May 05. Over the last 52-week period, shares are up 54.44%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Elanco Animal Health is scheduled to hold the call at 08:00:00 ET and can be accessed here.