What Happened?
Shares of animal health company Elanco (NYSE: ELAN) jumped 21.2% in the afternoon session after the company reported decent first quarter 2025 results which beat analysts' EPS expectations and included constant currency revenue outperformance. Organic sales were up 4%, thanks to strong demand in cattle health and good traction from new pet meds like Credelio Quattro. Even though sales were flat, operating margins improved, a sign they're managing prices and costs pretty well.
On the other hand, its full-year EBITDA guidance missed. Overall, we think this was a decent quarter with some key metrics above expectations.
Is now the time to buy Elanco? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Elanco’s shares are quite volatile and have had 16 moves greater than 5% over the last year. But moves this big are rare even for Elanco and indicate this news significantly impacted the market’s perception of the business.
Elanco is down 4.4% since the beginning of the year, and at $11.51 per share, it is trading 37.6% below its 52-week high of $18.45 from June 2024. Investors who bought $1,000 worth of Elanco’s shares 5 years ago would now be looking at an investment worth $579.58.
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
