Catalent Stock Soars: Company Cuts Annual Forecast By ~$400M Hurt By Operational Challenges

Catalent Inc CTLT lowered its 2023 revenue and profit forecast, reflecting operational challenges and higher-than-expected costs and delaying its Q3 FY23 earnings release twice this month.

The company expects FY23 sales of $4.25-$4.35 billion compared with its prior forecast of $4.63-$4.88 billion and the consensus of $4.35 billion. 

Catalent said it now sees adjusted net income of $187-$228 million, down from the previous forecast of $567- $648 million.

The company continues to win significant new business, including expansions of supply agreements with Novo Nordisk A/S NVO and Samsung Bioepis, it said.

It delayed its quarterly earnings release for the second time this month, stating it requires additional time to complete its preparation and review of its financial statements.

In April, Catalent reported productivity challenges and higher-than-expected costs at its drug product and drug substance manufacturing facilities in Bloomington, Indiana, and Brussels, Belgium. 

Catalent received a delisting notice from the New York Stock Exchange and said it would provide a business update for the third quarter on a conference call on Friday rather than a normal review of its financial results.

As previously reported, the company said the operational and productivity issues would reduce its fiscal 2023 net revenue and adjusted EBITDA guidance by more than $400 million each. 

Price Action: CTLT shares are up 15.50% at $37.12 on the last check Friday.