NYSE$OGN

Organon & Co. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Organon's performance remained solid, marked by volume growth across all regions and franchises.

Organon reported a 1% increase in total revenue to $1,608 million for the second quarter of 2023, or a 4% increase excluding the impact of foreign currency. Women's Health and Biosimilars franchises grew 10% and 15% ex-FX, respectively, while Established Brands remained stable. Net income was $242 million, or $0.95 per diluted share, compared to $234 million, or $0.92 per diluted share, in the second quarter of 2022.

  • Total revenue reached $1,608 million, a 1% increase as-reported and a 4% increase ex-FX.
  • Women's Health revenue increased by 8% as-reported and 10% ex-FX, driven by Nexplanon and fertility portfolio growth.
  • Biosimilars revenue increased by 14% as-reported and 15% ex-FX, primarily driven by Renflexis.
  • Established Brands revenue decreased 2% as-reported but was flat ex-FX.

Headline financials

Total Revenue

$1.61B

Previous: $1.59B+1.5%
EPS (adj)

$1.31

Previous: $1.25+4.8%
Gross Margin

60.2%

Previous: 62.9%-4.3%
Non-GAAP Adjusted Gross Margin

62.9%

Previous: 66.1%-4.8%
Adjusted EBITDA Margin

33.0%

Previous: 32.3%+2.2%
Capital Expenditures

-$117M

Previous: -$78M-50.0%
Free Cash Flow

$125M

Previous: $156M-19.9%
Net Income

$242M

Previous: $234M+3.4%
Operating Income

$389M

Previous: $459M-15.3%
Gross Profit

$968M

Previous: $997M-2.9%
Cash & Equivalents

$326M

Previous: $545M-40.2%
Total Assets

$11B

Previous: $10.6B+3.4%
Stock-Based Comp

$25M

Previous: $19M+31.6%

Revenue & EPS history

Organon · Revenue · Quarterly

$1.61B

Q2 2023+1.5%vs Q2 2022
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

The company is updating its full year 2023 guidance ranges previously provided on May 4, 2023. The range for full year 2023 revenue is narrowed to $6.25 billion to $6.45 billion, which primarily reflects current foreign currency exchange rates. The range for full year Adjusted EBITDA margin is now 31.5% to 33.0% to incorporate the company's current visibility of IPR&D and milestone expenses expected to be incurred in 2023.

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 2023

Historical avgQ2 2023

-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%

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