ELAN - Elanco lowers Q4 earnings outlook as jobs cut to cost ~$94M severance

Elanco (ELAN -1.9%) reveals plan to cut 380 positions in its workforce, including 20% of its senior management, in a move of organisational restructuring. The process is to cost about $89-$94M in severance pay during the fourth quarter for which Elanco lowers its earnings guidance. Revised Q4 Guidance: The company now expects its GAAP Net Loss to be in the range of $136-$95M (down $71-$65M from prior guidance), or GAAP EPS of negative $0.29-$0.20 (down $0.15-$0.13 from prior guidance). FY 2021 Guidance: Reported Net Loss to range between $476-$425M, or EPS of negative $1.06-$0.96. However, the company notes that there is change to the 2021 full year guidance disclosed on Nov. 5 2021 for revenue of $4.73-$4.77B, adjusted EBITDA of $1.04-$1.08B; and Non-GAAP EPS of $0.97-$1.03 vs. consensus of $1.02. Following restructuring, the compensation and benefits savings in 2022 are anticipated to be ~$60M, and once fully implemented, Elanco expects annual

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Elanco lowers Q4 earnings outlook as jobs cut to cost ~$94M severance