Is Elanco Stock a Buy?
Elanco Animal Health (NYSE: ELAN) has been trading on the markets for less than two years, and on Feb. 19, the company reported its first full-year results since it separated from Eli Lilly (NYSE: LLY).
The stock has a more modest market cap of $12 billion compared to Lilly's mammoth $136 billion valuation. But a lower valuation doesn't necessarily make Elanco a better investment, as it'll have to prove to investors that its growth opportunities are strong enough to make it a good buy. Let's take a look at where the company is today and whether investors should consider buying shares of the animal health company.
In the company's fourth-quarter results, the numbers were simply not impressive. Elanco reported a 2% decline in its top line with revenue of $787 million, down from $799 million in the prior-year quarter. The company finished the quarter in the red with a net loss of $9.5 million, which compared negatively to the previous year. However, in 2018, Elanco benefited from an income-tax benefit of $18.6 million which propped up its bottom line in Q4, pushing it into the black with a total profit of $16.4 million.
Source Fool.com
