Embecta (Nasdaq: EMBC) today posted third-quarter results today for the first time as a BD (NYSE: BDX) spinoff, beating the consensus forecast on Wall Street.
The Parsippany, New Jersey-based diabetes technology company reported profits of $62.4 million, or $1.08 per share, on sales of $291.1 million for the three months ended June 30.
Profits were down by 40%, and sales growth decreased 1.3% compared with Q3 2021, but the company said its first quarterly financial results as an independent entity “are not meaningfully comparable” to the time before Embecta spun off on April 1.
“Financial results during the pre-spin period were presented on the carve-out basis of accounting and do not purport to reflect what Embecta’s financial results would have been had Embecta operated as a standalone public company,” the company said in a news release.
Earnings were ahead of the Street, where analysts were looking for EPS of $0.87 on sales of $276.86 million.
“Our fiscal third quarter 2022 results reinforce our core strength and further position Embecta towards creating a company that allows for a life unlimited by diabetes,” Embecta CEO Devdatt “Dev” Kurdikar said in the news release. “Despite a challenging macro-economic environment, we delivered resilient commercial performance during our first quarter as an independent company.
In April, CFO Jake Elguicze said the company would bring in around $1.1 billion in annual revenue.
In May, the company reported $563.8 million worth of sales for the first half of the year. And today, Embecta maintained its guidance of approximately $555 million in second-half revenue.
“While we continue to navigate through supply chain and inflationary pressures, as well as certain COVID-19 restrictions,” Kurdikar said, “given the strength of our third quarter results, coupled with our outlook for the remainder of the fiscal year, we are reiterating our second half of 2022 fiscal year financial guidance for as-reported revenue growth, and raising our second half of 2022 fiscal year financial guidance for constant currency revenue growth, adjusted gross margin and adjusted EBITDA margin.”
Investors reacted by sending EMBC shares up more than 17% to $33.75 apiece in late afternoon trading. Our MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was relatively flat on the day.