Organon & Co (OGN) stock is soaring 5.16% in pre-market trading on Monday following the release of its third-quarter earnings report. The company reported adjusted earnings per share of $1.01, surpassing the analysts' estimate of $0.94. Revenue for the quarter came in at $1.602 billion, also beating the expected $1.575 billion.
The strong quarterly performance was highlighted by a significant improvement in profitability. Organon's adjusted EBITDA margin rose to 32.3% from 29.0% in the same quarter last year, primarily due to a 14% reduction in non-GAAP operating expenses. The company's adjusted net income increased to $263 million, up from $226 million in the third quarter of 2024.
However, investors should note that Organon has revised its full-year 2025 revenue guidance downward. The company now expects revenue in the range of $6.2 billion to $6.25 billion, compared to its previous forecast of $6.28 billion to $6.38 billion. This adjustment implies a nominal revenue growth between -3.2% and -2.4% for the year. Despite this cautious outlook, the market appears to be responding positively to the company's ability to exceed quarterly expectations and improve profitability in a challenging environment.
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