Embecta Corp · Q3 2024 earnings

Briefing

Embecta's business performed in alignment with expectations, generating strong margins and advancing strategic priorities.

Embecta Corp. reported a decrease in revenue by 4.8% to $272.5 million for the third quarter of fiscal year 2024. Despite the revenue decrease, the company demonstrated strong gross, operating, and EBITDA margins. They are also tightening and raising their fiscal 2024 outlook for certain financial metrics.

• Revenues decreased by 4.8% on a reported basis, and 3.9% on a constant currency basis, totaling $272.5 million.
• Gross profit reached $190.1 million with a margin of 69.8%, compared to $189.5 million and 66.2% in the prior year period.
• Operating income increased to $55.9 million with a margin of 20.5%, compared to $51.3 million and 17.9% in the prior year period.
• Net income was $14.7 million, resulting in earnings per diluted share of $0.25, compared to $15.2 million and $0.26 in the prior year period.

Headline financials

Revenue & EPS history

For fiscal year 2024, the company expects revenues between $1,111 - $1,116 million, adjusted gross margin between 65.25% - 65.50%, adjusted operating margin between 25.75% - 26.00%, adjusted earnings per diluted share between $2.30 - $2.35, and adjusted EBITDA margin between 31.25% - 31.50%.