Catalent gains over 11% and rebound from bottom 🔔

Catalent (CTLT.US) shares gain over 11% after publishing preliminary results for the first quarter of the fiscal year 2023/2024 and providing forecasts for the entire year. The company's stock price is rising despite a record loss recorded in the ended period.

Financial Summary

• Net revenue of $982 million, a decrease of 3.9% year-over-year.

  • Biologics net revenue: $447 million, a 15% decrease year-over-year, above the estimated $426.9 million.
  • Net revenue from pharmaceuticals and consumer health: increased by 7.2% year-over-year, to $535 million.

• Net loss of $715 million, including non-cash write-downs of the company's value amounting to $700 million.

• Adjusted EBITDA of $115 million, a decrease of 38% year-over-year.

Forecasts for the entire fiscal year:

• Net revenue: $4.3 - $4.5 billion.
• Adjusted EBITDA: $680 - $760 million.
• Net profit: $113 - $175 million.

In their commentary, the management emphasized Catalent's strategic achievements, including the strategic review initiated in August and changes in the board after a settlement with Elliott Investment Management. Despite these challenges, Catalent expects that the majority of its pre-filled syringe production capacities until 2026 will be fully booked in the short period, due to high demand for new weight-loss drugs from Danish drugmaker Novo Nordisk's Wegovy.

Catalent (CTLT.US) shares are gaining over 11% in today's trading. The increases are driven by optimistic forecasts and positive management sentiment. However, the company's recent problems have pushed its stock price to multi-year lows this year. The current rebound is still a fraction of the share price at the peak of the pandemic bull market, at $140 per share. The current increase is capped by levels of $46 and $51, and breaking through these levels could indicate a breakout from consolidation. Source: xStation 5