The shares of the contract manufacturer Catalent, Inc. (NYSE:CTLT) dropped ~10% in pre-market trading Monday after the company reported a mixed performance with its Q4 financials for fiscal 2022, and its guidance for fiscal 2023 fell short of Street forecasts.
Despite an earnings beat, CTLT’s revenue of $1.3B for the quarter lagged expectations even after a ~10% YoY growth on a reported basis, while annual revenue climbed ~21% YoY to $4.83B.
With the appointment of new Chief Executive Alessandro Maselli in July, CTLT has reorganized its structure into two segments: Biologics and Pharma and Consumer Health.
Biologics’ function includes the services the company provides for vaccine developers. Pharma and Consumer Health covered the product offerings of Softgel and Oral Technologies, Oral and Specialty Delivery, and Clinical Supply Services.
On a constant currency basis, the quarterly net revenue from the biologics segment rose ~14% YoY to $667M. In contrast, Softgel and Oral Technologies, the largest revenue contributor to Consumer Health, added $350M with ~22% YoY growth.
During Q4 FY22, CTLT generated ~51% and ~8% of quarterly net revenue from the biologics segment and Clinical Supply Services compared to ~50% and ~9% in the prior-year period, respectively.
While adj. EBITDA rose ~10% YoY to $384M, the net earnings attributed to common shareholders jumped ~13% YoY to $188M.
For fiscal 2023, CTLT projects $4.975B – $5.225B of revenue which lagged the consensus of $5.28B.