Catalent shares added more than 11% after the contract drugmaker’s preliminary first quarter earnings topped expectations and it reaffirmed its full-year fiscal 2024 guidance.
For the quarter ended in September, Catalent reported a 4% year-over-year drop in revenue from $1.02 billion to $982 million, above Wall Street estimates of $933.2 million.
Its adjusted net loss was $19 million, or $0.10 per share, also ahead of estimates of $0.13. In the year-ago quarter, it reported a profit of $61 million or earnings per share of $0.34.
For fiscal 2024, Catalent said it continues to expect revenue in the range of $4.3 billion to $4.5 billion, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $680 million to $760 million and adjusted income in the range of $113 million to $175 million.
This is in line with Wall Street analysts’ forecast of full-year revenue of $4.35 million.
“As Catalent continues to execute our strategy to enhance value for our stakeholders, the strength of our internal pipeline and our solid first quarter financial performance give us the confidence to reiterate our guidance for the full year," Catalent CEO Alessandro Maselli said in a statement.
Also buoying the stock on Wednesday were management’s comments during its investor conference call that it expects its production capacity for pre-filled syringes until fiscal 2026 to soon be booked out due to rising demand for weight loss drugs like Novo Nordisk (NYSE:NVO)'s Wegovy.
Revenue contribution from GLP-1 drugs could top $500 million once its expanded capacity is operational, up from $100 million expected in fiscal 2024, CEO Maselli told investors.
“Our exposure to the GLP-1 opportunity is rapidly growing," Maselli said.
Catalent shares gained 11.2% at US$39.49 at noon on Wednesday.
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