Embecta (Nasdaq:EMBC) shares got a massive boost today on first-quarter results that came in well ahead of the consensus forecast.
Shares of EMBC rose nearly 40% to $14.17 apiece in late-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — rose 0.7%.
The Parsippany-based BD diabetes spinoff reported profits of $28.9 million. That equals 50¢ per share on sales of $287.2 million for the quarter ended March 31, 2024.
Embecta more than doubled its profits on a sales uptick of 3.6%.
Adjusted to exclude one-time items, earnings per share came in at 67¢. That landed 27¢ ahead of expectations on Wall Street. Sales also landed well ahead of the forecast as experts estimated $264.7 million in revenue.
Devdatt (Dev) Kurdikar, CEO of Embecta, said in a news release that the company continued to progress on several fronts, including progress with its open-loop insulin patch pump technology that remains under FDA review. Its closed-loop insulin delivery system for type 2 diabetes, which has FDA breakthrough device designation, continues to move forward, too.
“Our performance in the second quarter and fiscal first half of 2024 underscores the resiliency of our base business, as well as strong operational execution by our global team,” Kurdikar said. “Since our spinoff approximately two years ago, we’ve remained steadfast in delivering on our financial and strategic priorities, including standing Embecta up as an independent company; maintaining stability within our core injection business; and investing in growth, most notably behind our insulin patch pump.”
Embecta raised the low end of its guidance range for 2024, now projecting revenues between $1.111 billion and $1.116 billion. It raised its adjusted EPS forecast from between $1.95 and $2.15 to between $2.20 and $2.30.
Analysts remain neutral on Embecta as they await more information on the coming developments.
“We acknowledge a lack of visibility into the timing and investments needed to build a manufacturing and commercial infrastructure for the planned Type 2 patch pump,” said BTIG’s Marie Thibault and Sam Eiber.
