Catalent (NYSE: CTLT), the contract drug manufacturer, has experienced a surge in its shares despite announcing yet another delay for its Q3 FY23 report and lowering its full-year outlook. The company postponed the earnings release for the third time, moving it from Monday to Friday in order to finalize financial statements. However, this delay caused the NYSE to notify Catalent of its non-compliance with the stock exchange’s timely filing criteria.
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In addition to the delay, the company has also decreased its full-year guidance, with projected revenue ranging between $4.25B – $4.35B and adjusted net income forecasted at $187M – $228M. This contrasts starkly with the previous revenue and adjusted net income guidance, which was predicted at $4.625B – $4.875B and $567M – $648M, respectively.
The delay in the release of Catalent’s earnings report was attributed to the identification of certain accounting adjustments in previously issued financial statements associated with its operations in Bloomington, Indiana. Despite the setbacks and reduced guidance for fiscal 2023, investors have remained largely confident, with Catalent shares increasing by 13% to $36.43 after an initial drop. This year, however, the company’s stock has declined by 19%.
Overall, Wall Street analysts have a consensus price target of $55.50 on CTLT stock, implying 49.52% upside potential, as indicated by the graphic above.
