NYSE$OGN
Organon & Co. · Q3 2023 earnings
Q3 2023 earnings · · Investor relations
Briefing
Organon's revenue decreased slightly, with mixed performance across segments, while profitability declined due to various factors.
Organon reported a slight decrease in revenue for Q3 2023, with Women's Health declining but Biosimilars and Established Brands showing growth. Profitability margins decreased due to foreign exchange, inflation, and product mix. The company narrowed and lowered its full-year revenue guidance.
- Total revenue decreased by 1% compared to Q3 2022.
- Women's Health revenue declined, impacted by generic competition for NuvaRing and unfavorable discount rates for fertility products and Nexplanon.
- Biosimilars revenue increased by 10%, driven by Renflexis and Ontruzant.
- Established Brands revenue increased by 2%, driven by Atozet, Nasonex, and Dulera.
Headline financials
Revenue & EPS history
Organon · Revenue · Quarterly
$1.52B
Revenue by segment
Organon · $1.52B total across 4 segments · Q3 2023
- Established Brands$959M—63.1%
- Women's Health$376M—24.8%
- Biosimilars$144M—9.5%
- Other$40M—2.6%
Forward guidance
Organon is updating its full year 2023 guidance ranges. The range for full year 2023 revenue is narrowed and lowered to $6.15 billion to $6.25 billion. The range for full year Adjusted EBITDA margin is now 30.5% to 31.5%.
Tailwinds
- Established Brands franchise to achieve flat to slightly better revenue growth on a constant currency basis for the full year 2023.
- Focus on reducing leverage as we move into 2024.
- Continue to add products that could enhance growth profile.
- Existing products produce strong cash flows
- Pursuing opportunities to collaborate with biopharmaceutical innovators
Headwinds
- Revenue guidance narrowed and lowered to $6.15B - $6.25B due to foreign currency exchange rates.
- Changes to the go-to-market model for Nexplanon.
- Slower uptake of Hadlima.
- Macroeconomic factors in China.
- Adjusted EBITDA margin now 30.5% to 31.5% to reflect a lower gross margin stemming from the impacts of foreign exchange on revenue.
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 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
| Quarter | Report date | Reaction (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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