Elanco Animal Health shares jump on strong Q1 results, raised forecast

Shares of Elanco Animal Health (NYSE:ELAN) surged in premarket trading Wednesday after the animal drug maker reported better-than-expected first-quarter financial results and raised its full-year guidance.

The company's stock rose 8.83% to $10.35 in premarket activity following the announcement.

This increase provides a positive turn for the stock, which had seen a 22% decline as of its last close.

For the first quarter, Elanco reported revenue of $1.19 billion, exceeding the LSEG estimate of $1.17 billion.

The company also posted an adjusted profit of 37 cents per share, beating the estimated 31 cents per share.

Looking ahead, Elanco raised its annual revenue forecast to a range of $4.51 billion to $4.58 billion, up from its previous expectation of $4.45 billion to $4.51 billion.

Elanco stated that its updated outlook accounts for an estimated net tariff impact of between $16 million and $20 million on adjusted core profit.