Elanco Animal Health's Earnings May Hide Underlying Issues

Elanco Animal Health (NYSE:ELAN) reported subdued earnings with a subdued market reaction. However, investors should be aware of underlying factors that may be of concern. The company's profit was reduced by $42m due to unusual items in the last 12 months. Additionally, it received a $52m tax benefit, which may not be repeated. This implies a risk that statutory profit overstates the sustainable earnings power of the business.