ELAN - Elanco Animal Health: A Solid Sale Addresses Leverage
2024-02-09 05:07:25 ET
Summary
- Elanco Animal Health's outlook for 2024 is looking more positive with signs of stabilization, lower interest rates, and new product introductions.
- ELAN recently divested its aqua business to Merck Animal Health for $1.3 billion, addressing leverage concerns and focusing more on animal health and livestock.
- Pro forma net debt is expected to decrease, leading to lower leverage ratios and the potential for earnings to exceed $1 per share in 2024.
Towards the end of last year, I believed that the outlook for Elanco Animal Health ( ELAN ) started to look healthier. Following an expensive deal for Bayer's animal health unit, Elanco was saddled with debt but moreover faced revenue declines, the cocktail of which cast a real shadow on the business and its shares....
Elanco Animal Health: A Solid Sale Addresses Leverage