Catalent (NYSE:CTLT) shares surged nearly 5% in the pre-market session today after the healthcare company reported a better-than-anticipated set of first-quarter numbers. Furthermore, it reaffirmed its outlook for Fiscal Year 2024.
In Q1, net revenue of $982 million beat expectations by $47 million, despite declining by 3.7% over the prior year. In addition, EPS of -$0.10 handily outperformed estimates by $0.04. During the quarter, net revenue in CTLT’s Biologics segment declined by 16%, alongside a 54% contraction in the segment’s EBITDA.
Its Pharma and Consumer Health segment, however, was a mixed bag with a 5% increase in sales but a 9% decline in EBITDA. At the end of the quarter, the company had a total debt of $4.95 billion with a net leverage ratio of 7.4x. In comparison, Catalent’s net leverage ratio stood at 3.2x in the year-ago period.
Looking ahead to Fiscal Year 2024, Catalent expects net revenue to be in the range of $4,300 million to $4,500 million. Adjusted net income for the year is seen landing between $113 million and $175 million.
What is the Stock Price Forecast for Catalent?
Overall, the Street has a Moderate Buy consensus rating on Catalent. The average CTLT price target of $52 implies a substantial 46.4% potential upside. That’s after a nearly 23% slide in the company’s share price over the past month.
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