NYSE$OGN

Organon & Co. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Organon's existing portfolio delivered sustainable growth, with newly-acquired assets gaining traction.

Organon reported a 4% decrease in total net revenues as-reported, but a 3% increase excluding the impact of foreign currency. Women's Health grew 19% as-reported and 23% ex-FX. Net income from continuing operations was $227 million, or $0.89 per diluted share. Non-GAAP Adjusted net income from continuing operations was $337 million, or $1.32 per diluted share.

  • Total net revenues were $1,537 million, a decrease of 4% as-reported, but an increase of 3% ex-FX.
  • Women’s Health grew 19% as-reported, and 23% ex-FX.
  • Gross margin was 64.2% as-reported, compared with 61.9% in the prior year period.
  • Adjusted EBITDA margin was 35.5% compared with 38.2% in the third quarter of 2021.

Headline financials

Total Revenue

$1.54B

Previous: $1.6B-3.9%
EPS (adj)

$1.32

Previous: $1.67-21.0%
Gross Margin

64.2%

Previous: 61.9%+3.7%
Non-GAAP Adjusted Gross Margin

67.1%

Previous: 64.9%+3.4%
Adjusted EBITDA Margin

35.5%

Previous: 38.2%-7.1%
Capital Expenditures

-$133M

Previous: -$133M+0.0%
Free Cash Flow

$94M

Previous: $190M-50.5%
Net Income

$227M

Previous: $323M-29.7%
Operating Income

$399M

Previous: $491M-18.7%
Gross Profit

$986M

Previous: $991M-0.5%
Cash & Equivalents

$499M

Previous: $1.01B-50.5%
Total Assets

$10.4B

Previous: $11.3B-7.9%
Stock-Based Comp

$18M

Previous: $15M+20.0%

Revenue & EPS history

Organon · Revenue · Quarterly

$1.54B

Q3 2022-3.9%vs Q3 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 2022 financial guidance ranges previously provided on August 4, 2022. The company's financial guidance does not assume an estimate for future IPR&D and milestone payments for business development transactions not yet executed.

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 Q3 2022

Historical avgQ3 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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