Why Embecta Shares Are Falling Today

  • Becton Dickinson and Co's BDX pure-play diabetes spin-off Embecta Corp EMBC has reported Q2 sales of $274.5 million, down 3.4% on a reported basis, down 1.3% on a constant currency basis.
  • Of the decrease, $6.0 million was attributable to unfavorable effects from foreign currency translation. 
  • Volume unfavorably impacted revenues by approximately $3.7 million, primarily driven by customers in the U.S. and Europe.
  • Gross profit and margin were $191.2 million and 69.7%, compared to $196.3 million and 69.1% a year ago.
  • Net income was $79.6 million, compared to $107.9 million in Q1 FY21.
  • Adjusted EBITDA and margin were $116.8 million and 42.6%, compared to $141.6 million and 49.8% a year ago.
  • Guidance: Embecta expects 2H FY22 sales of approximately $555 million, down about 7% Y/Y. 
  • Excluding foreign currency exchange rate fluctuations, revenue is expected to decrease by approximately 3.5%.
  • The company expects contract manufacturing revenue of approximately $15 million.
  • Adjusted gross margin is expected to be in the "low-60%s, with an adjusted EBITDA margin in the "low-30%s".
  • Price Action: EMBC shares are down 7.34% at $26.76 during the premarket session on the last check Friday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceHealth CareSmall CapMoversTrading IdeasGeneralBriefswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!