Overview
Embecta Q4 revenue misses analyst expectations, down 7.7% yr/yr
Adjusted EBITDA for Q4 beats analyst estimates, indicating strong operational performance
Company announces quarterly dividend of $0.15 per share
Outlook
Embecta expects fiscal 2026 revenue between $1,071 mln and $1,093 mln
Company anticipates fiscal 2026 EPS of $2.80 to $3.00
Embecta sees fiscal 2026 adjusted operating margin of 29% to 30%
Result Drivers
ADVANCED ORDERING IMPACT - Revenue decline attributed to advanced distributor ordering in previous quarters and ongoing business dynamics in China
PROFITABILITY IMPROVEMENT - Higher GAAP operating margin and net income year over year, exceeding adjusted operating and EBITDA margin ranges
DEBT REDUCTION - Focus on operational efficiency and restructuring led to accelerated debt reduction and increased financial flexibility
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Slight Miss* | $264 mln | $265.69 mln (4 Analysts) |
Q4 Adjusted EPS | Miss | $0.50 | $0.54 (3 Analysts) |
Q4 Net Income | $26.40 mln | ||
Q4 Adjusted EBITDA | Beat | $89.90 mln | $79.50 mln (3 Analysts) |
Q4 Adjusted Operating Income | Beat | $66.70 mln | $63.75 mln (3 Analysts) |
Q4 Adjusted Gross Profit | $159.50 mln | ||
Q4 Dividend | $0.15 | ||
Q4 Gross Profit | $158.50 mln | ||
Q4 Operating Income | $56.50 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy."
Wall Street's median 12-month price target for Embecta Corp is $14.00, about 4.6% below its November 24 closing price of $14.64
The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 4 three months ago
Press Release: ID:nGNXbrZwx5
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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