NASDAQ$EMBC

Embecta Corp · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported financial results for the fourth quarter and full year of fiscal year 2023 and provided initial fiscal year 2024 financial guidance.

Embecta Corp. reported a 2.7% increase in revenues to $281.9 million for the fourth quarter of fiscal year 2023. The company's operating income was $25.8 million, and net income was $6.0 million, or $0.10 per diluted share. The company also announced a dividend of $0.15 per share.

  • Revenues increased by 2.7% to $281.9 million, or 2.1% on a constant currency basis.
  • Gross profit was $181.8 million with a margin of 64.5%.
  • Operating income was $25.8 million with a margin of 9.2%.
  • Net income was $6.0 million, resulting in earnings per diluted share of $0.10.

Headline financials

Total Revenue

$282M

Previous: $275M+2.7%
EPS (adj)

$0.59

Previous: $0.73-19.2%
Adjusted EBITDA Margin

28.2%

Previous: 31.8%-11.3%
Capital Expenditures

$9.2M

Previous: $8.6M+7.0%
Free Cash Flow

$20.4M

Previous: $49.4M-58.7%
Net Income

$6M

Previous: -$17.2M+134.9%
Operating Income

$25.8M

Previous: -$3M+960.0%
Gross Profit

$182M

Previous: $177M+2.8%
Cash & Equivalents

$327M

Previous: $331M-1.3%
Total Assets

$1.21B

Previous: $1.09B+11.8%
Stock-Based Comp

$4.9M

Previous: $4.4M+11.4%

Revenue & EPS history

Embecta · Revenue · Quarterly

$282M

Q4 2023+2.7%vs Q4 2022
Beat estimate in 12 of 14 quarters(86%)
ActualEstimate

Forward guidance

For fiscal year 2024, the company expects revenues between $1,085 million and $1,105 million, adjusted earnings per diluted share between $1.90 and $2.10, and adjusted EBITDA margin between 29.5% and 30.5%.

Tailwinds

  • Revenue between $1,085 million and $1,105 million.
  • Adjusted Gross Margin between 63.0% and 64.0%.
  • Adjusted Operating Margin between 23.75% and 24.75%.
  • Adjusted Earnings per Diluted Share between $1.90 and $2.10.
  • Adjusted EBITDA Margin between 29.5% and 30.5%.

Headwinds

  • As Reported Revenue growth between -3.0% and -1.0%.
  • Constant Currency Revenue growth between -2.0% and 0.0%.
  • F/X impact of approximately -1.0%.
  • Contract Manufacturing revenue between $0 and $5 million.
  • Unable to present a quantitative reconciliation of expected adjusted gross margin, adjusted operating margin, expected adjusted earnings per diluted share, expected adjusted EBITDA and our expected adjusted EBITDA margin.

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 Q4 2023

Historical avgQ4 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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro