NASDAQ$EMBC

Embecta Corp · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported financial results for the first quarter of fiscal year 2023, exceeding initial expectations despite a challenging operating environment.

Embecta Corp. reported its first quarter fiscal year 2023 financial results, with revenues of $275.7 million, a decrease of 4.7% on a reported basis but an increase of 0.7% on a constant currency basis. The company's performance exceeded initial expectations, and they are raising their guidance for key financial reporting metrics.

  • Revenues were $275.7 million, down 4.7% on a reported basis and up 0.7% on a constant currency basis.
  • U.S. revenues decreased 1.1% on both a reported and constant currency basis.
  • International revenues decreased 8.7% on a reported basis, and increased 2.6% on a constant currency basis.
  • Net income and diluted earnings per share were $35.2 million and $0.61, respectively.

Headline financials

Total Revenue

$276M

Previous: $289M-4.7%
EPS (adj)

$0.96

Previous: $1.73-44.5%
Adjusted EBITDA Margin

40.0%

Previous: 47.8%-16.3%
Capital Expenditures

-$4.7M

Previous: $4.3M-209.3%
Free Cash Flow

$30.5M

Previous: $135M-77.3%
Net Income

$35.2M

Previous: $98.8M-64.4%
Operating Income

$88.8M

Previous: $117M-23.8%
Gross Profit

$189M

Previous: $204M-7.4%
Cash & Equivalents

$385M

No prior period
Total Assets

$1.2B

Previous: $740M+61.8%
Stock-Based Comp

$5.5M

Previous: $4.6M+19.6%

Revenue & EPS history

Embecta · Revenue · Quarterly

$276M

Q1 2023-4.7%vs Q1 2022
Beat estimate in 12 of 14 quarters(86%)
ActualEstimate

Forward guidance

For fiscal year 2023, the Company now expects revenues between $1,084 - $1,107 million, adjusted gross margin of approximately 63.5%, adjusted operating margin of approximately 26.5%, adjusted diluted earnings per share between $2.20 - $2.35, and adjusted EBITDA margin of approximately 31.5%.

Tailwinds

  • Revenues: $1,084 - $1,107 million
  • As Reported (%): (4.0%) - (2.0%)
  • Constant Currency (%): (1.5%) - 0.5%
  • Contract Manufacturing: $5 - $10 million
  • Adjusted Gross Margin (%): ~63.5%

Headwinds

  • F/X (%): (2.5%) - (2.5%)
  • Adjusted Operating Margin (%): ~26.5%
  • Adjusted Diluted Earnings per Share: $2.20 - $2.35
  • Adjusted EBITDA Margin (%): ~31.5%
  • We are unable to present a quantitative reconciliation of our expected adjusted gross margin, expected adjusted operating margin, expected adjusted diluted earnings per share, expected adjusted EBITDA and our expected adjusted EBITDA margin as we are unable to predict with reasonable certainty and without unreasonable effort the impact and timing of any one-time items.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+2.6%

Avg return

Earnings day

-0.9%

Avg return

5 days after

-8.3%

Avg return

30 days after

42%

8 / 19 earnings

Positive

+42.9%

Q4 2024

Best reaction

-15.7%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+1.1%-60.6%-63.0%
Q1 2026-7.8%-9.3%-20.1%
Q4 2025-7.3%-12.9%-17.5%
Q2 2025-9.7%-12.9%-26.4%
Q1 2025-2.6%-3.8%-29.9%
Q4 2024+42.9%+44.6%+44.6%
Q3 2024+2.9%+2.9%+6.8%
Q2 2024+38.7%+42.2%+21.1%
Q1 2024-15.7%-18.1%-22.5%
Q4 2023+7.9%+7.1%+14.3%
Q3 2023-0.5%-3.6%-27.3%
Q2 2023-0.7%-3.4%-11.8%
Q1 2023+15.3%+12.0%+3.9%
Q4 2020-1.9%-4.3%-15.4%
Q4 2022-13.6%-15.3%-28.1%
Q3 2021+12.7%+16.6%+13.3%
Q3 2022+12.7%+16.6%+13.3%
Q2 2022-12.6%-7.7%-6.2%
Q2 2021-12.6%-7.7%-6.2%
Q4 2021
Q1 2022

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