NASDAQ$EMBC

Embecta Corp · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Embecta's Q2 2024 performance demonstrated resilience in its base business, driven by strong operational execution and progress in strategic priorities.

Embecta Corp. reported a 3.6% increase in revenue to $287.2 million for the second quarter of fiscal year 2024. The company is also raising and tightening its fiscal 2024 outlook for key financial metrics.

  • Revenues increased by 3.6% to $287.2 million, or 4.5% on a constant currency basis.
  • U.S. revenues increased 0.8% on both a reported and constant currency basis.
  • International revenues increased 6.8% on a reported basis, and 8.7% on a constant currency basis.
  • Net income and earnings per diluted share were $28.9 million and $0.50, respectively, compared to $14.0 million and $0.24 in the prior year period.

Headline financials

Total Revenue

$287M

Previous: $277M+3.6%
EPS

$0.50

Previous: $0.75-33.3%
Gross Profit Margin

64.6%

No prior period
Adjusted Gross Profit Margin

64.7%

No prior period
Operating Income Margin

13.6%

No prior period
Adjusted Operating Income Margin

26.1%

No prior period
Adjusted EBITDA Margin

31.6%

Previous: 34.9%-9.5%
Capital Expenditures

-$6.1M

Previous: -$10.5M+41.9%
Free Cash Flow

$22.8M

Previous: $3.5M+551.4%
Net Income

$28.9M

Previous: $14M+106.4%
Operating Income

$39.2M

Previous: $55.6M-29.5%
Gross Profit

$185M

Previous: $190M-2.3%
Cash & Equivalents

$300M

Previous: $346M-13.5%
Total Assets

$1.2B

Previous: $1.21B-0.9%
R&D Expense

$18.4M

No prior period
Stock-Based Comp

$6.5M

Previous: $5.8M+12.1%

Revenue & EPS history

Embecta · Revenue · Quarterly

$287M

Q2 2024+3.6%vs Q2 2023
Beat estimate in 12 of 14 quarters(86%)
ActualEstimate

Forward guidance

For fiscal year 2024, the Company now expects revenues between $1,111 million and $1,116 million, adjusted gross margin between 64.5% and 65.0%, adjusted operating margin between 25.25% and 25.75%, and adjusted earnings per diluted share between $2.20 and $2.30.

Tailwinds

  • Revenues are expected to be between $1,111 million and $1,116 million.
  • Adjusted Gross Margin is expected to be between 64.5% and 65.0%.
  • Adjusted Operating Margin is expected to be between 25.25% and 25.75%.
  • Adjusted Earnings per Diluted Share is expected to be between $2.20 and $2.30.
  • Adjusted EBITDA Margin is expected to be between 31.0% and 31.5%.

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 Q2 2024

Historical avgQ2 2024

+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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