Shares of pharma, biotech as well as consumer healthcare products provider Catalent (NYSE:CTLT) are tanking today after the company posted lower-than-expected first-quarter numbers and scaled back its outlook.
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Revenue dropped 2.9% year-over-year to $1.02 billion, missing expectations by $60 million. EPS at $0.34 too lagged estimates by $0.22.
CTLT witnessed an impact from the resolutions of take-or-pay contracts and saw its adjusted EBITDA slide by 26% to $187 million during this period.
Further, the company completed the acquisition of Metrics Contract Services for $475 million in October. Amid challenging macro conditions, rising inflation, and foreign exchange headwinds, the company now expects 2023 net revenue to land between $4.625 billion and $4.875 billion. Adjusted net income is expected between $567 million and $648 million.
Earlier, Catalent had expected net revenue to range between $4.975 billion and $5.225 billion. Adjusted net income was anticipated between $660 million and $730 million.
CTLT shares are now down a whopping 60.1% year-to-date.
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