NYSE$OGN

Organon & Co. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Organon delivered constant currency growth across all reported geographies and in all three franchises.

Organon reported a decrease of 1% in total net revenues as-reported, but an increase of 5% excluding the impact of foreign currency compared to Q2 2021. The company saw growth in Biosimilars revenue, and its Established Brands franchise performed well. Organon is updating its full year 2022 guidance ranges and now expects revenue between $6.1 billion and $6.3 billion.

  • Total net revenues were $1,585 million, a decrease of 1% as-reported, but an increase of 5% ex-FX, compared with Q2 2021.
  • Women’s Health declined 2% as-reported, but increased 1% ex-FX compared to Q2 2021.
  • Biosimilars revenue grew 39% as-reported and 42% ex-FX compared with Q2 2021.
  • Established Brands decreased 2% as-reported and increased 4% ex-FX compared with Q2 2021.

Headline financials

Total Revenue

$1.59B

Previous: $1.6B-0.6%
EPS (adj)

$1.25

Previous: $1.72-27.3%
Gross Margin

62.9%

Previous: 63.4%-0.8%
Non-GAAP Adjusted Gross Margin

66.1%

Previous: 65.6%+0.8%
Adjusted EBITDA Margin

32.3%

Previous: 39.3%-17.8%
Capital Expenditures

-$78M

Previous: -$97M+19.6%
Free Cash Flow

$156M

Previous: $330M-52.7%
Net Income

$234M

Previous: $427M-45.2%
Operating Income

$459M

Previous: $519M-11.6%
Gross Profit

$997M

Previous: $1.01B-1.5%
Cash & Equivalents

$545M

Previous: $730M-25.3%
Total Assets

$10.6B

Previous: $10.9B-2.7%
Stock-Based Comp

$19M

Previous: $18M+5.6%

Revenue & EPS history

Organon · Revenue · Quarterly

$1.59B

Q2 2022-0.6%vs Q2 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Organon · $1.52B total across 4 segments · Q3 2023

  • Established Brands
    $959M
  • Women's Health
    $376M
  • Biosimilars
    $144M
  • Other
    $40M

Forward guidance

Organon is updating its full year 2022 guidance ranges previously provided on May 5, 2022. The range for full year 2022 revenue is narrowed to $6.1 billion to $6.3 billion, which reflects persisting foreign exchange headwinds. The range for full year Adjusted EBITDA margin is now 32% to 34% to incorporate approximately $110 million of IPR&D and milestone expenses from business development through August 4, 2022.

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-0.9%

Avg return

Earnings day

-1.6%

Avg return

5 days after

-4.8%

Avg return

30 days after

40%

10 / 25 earnings

Positive

+14.4%

Q4 2023

Best reaction

-26.9%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.6%+0.1%+0.1%
Q4 2025-8.2%-5.3%-17.4%
Q3 2025+14.0%+11.1%+5.9%
Q1 2025-26.9%-29.4%-28.7%
Q4 2024+11.0%+5.3%+4.1%
Q3 2024+0.8%-8.2%-11.5%
Q2 2024-5.6%-0.2%+5.8%
Q1 2024+4.1%+8.3%+13.3%
Q4 2023+14.4%+13.0%+11.7%
Q3 2023-9.2%-15.3%-21.5%
Q2 2023+6.2%+6.2%-10.7%
Q1 2023-7.1%-12.4%-18.5%
Q4 2022-11.1%-7.6%-25.9%
Q3 2022-6.1%-9.1%+3.0%
Q2 2022-3.3%-3.6%-12.5%
Q1 2022+4.8%+4.7%+12.0%
Q4 2019+0.8%-0.3%-4.9%
Q4 2021-0.7%-1.0%-3.5%
Q3 2020-3.9%-5.1%-17.2%
Q3 2021-8.0%-8.4%-21.5%
Q2 2020+3.4%-2.9%-1.4%
Q2 2021+14.3%+18.2%+13.2%
Q4 2020-1.5%+0.7%+1.6%
Q1 2020-1.5%+0.7%+1.6%
Q1 2021-1.5%+0.7%+1.6%

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