Embecta (Nasdaq:EMBC) shares received a boost today on fourth-quarter results that came in well ahead of the consensus forecast.
Shares of EMBC ticked up 7.9% at $30.67 apiece in mid-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — rose 11.3%.
Wall Street’s positive reaction to the results is likely attributable to Embecta’s sizeable guidance increase for 2023.
The company now projects adjusted EPS to range between $2.20 and $2.35. That marks a significant rise from previous expectations of between $1.75 and $2. Embecta also upped its revenue guidance, now projecting between $1.084 billion and $1.107 billion. Its previous range fell between $1.05 billion and $1.073 billion.
The rest of the Q4 results for Embecta
The Parsippany, New Jersey-based diabetes technology developer posted profits of $35.2 million. That amounts to 61¢ per share on sales of $275.7 million for the three months ended Dec. 31, 2022.
Embecta, the BD diabetes spinoff, registered a 64.4% bottom-line slide on a sales decline of 4.7%.
Adjusted to exclude one-time items, earnings per share totaled 96¢. That landed 45¢ ahead of expectations on Wall Street. Sales topped analysts’ estimates as well, as they projected revenues of $262.9 million.
Embecta listed highlights for the quarter, including “continued progress” on its development of a closed-loop insulin delivery system. The patch pump technology, which has FDA breakthrough device designation, targets the type 2 diabetes community. Devdatt (Dev) Kurdikar, Embecta CEO, recently spoke with Drug Delivery Business News to discuss this development, among other things.
“We are pleased with our financial performance in the first fiscal quarter, which exceeded our initial expectations in an operating environment that remains challenging,” Kurdikar said. “During fiscal year 2023, we remain focused on three key strategic priorities: strengthening our base business, separating and standing up Embecta as an independent company, and investing in growth.
“Throughout the first quarter, we made progress on each of these objectives, as we continue setting up Embecta for sustainable success. Given our performance during the first quarter, we are raising our guidance for our key financial reporting metrics.”