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Catalent, Inc. (CTLT), headquartered in Somerset, New Jersey, enables pharma, biotech, and consumer health partners to optimize product development, launch, and full life-cycle supply for patients worldwide. Valued at $10.62 billion by market cap, the company has expertise in development sciences, delivery technologies, and multi-modality manufacturing. It is a preferred industry partner for personalized medicines, consumer health brand extensions, and blockbuster drugs. The leading global CDMO is expected to announce its fiscal fourth-quarter earnings for 2024 on Tuesday, Sep. 3.
Ahead of the event, analysts expect CTLT to report a profit of $0.44 per share on a diluted basis, up 388.9% from $0.09 per share in the year-ago quarter. The company missed the consensus estimates in three of the last four quarters while beating on another occasion.
For fiscal 2024, analysts expect CTLT to report a loss per share of $0.17, down 120% from $0.85 in fiscal 2023.
CTLT stock has outperformed the S&P 500’s ($SPX) 14.5% gains on a YTD basis, with shares up 31.3% during this period. Similarly, it outshined the S&P 500 Healthcare Sector SPDR’s (XLV) 10% gains over the same time frame.
On Feb. 5, CTLT shares rose by 9.7% after it announced a merger agreement under which Novo Holdings will acquire CTLT in an all-cash deal valuing the company at $16.5 billion on an enterprise value basis. Novo Holdings is the parent company of Novo Nordisk A/S (NVO), famous for its weight loss drugs Wegovy and Ozempic. NVO will leverage CTLT’s status as a key manufacturing subcontractor to expand its fill-finish capacity to meet the high demand for its popular obesity drug, Wegovy.
On May 8, CTLT reported its Q3 results. Its adjusted loss per share was $0.60, falling short of the adjusted EPS estimates of $0.24. The company’s revenue stood at $1.07 billion, missing the consensus estimates of $1.11 billion. Its adjusted EBITDA rose 55.2% year over year to $163 million. CTLT shares closed down marginally on the day the results were released.
Analysts’ consensus opinion on CTLT stock is neutral, with a “Hold” rating overall. Out of 10 analysts covering the stock, two advise a “Strong Buy” rating, and eight recommend a “Hold.” The average analyst price target for CTLT is $62.36, indicating a 5.7% potential upside from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
