Overview

* Embecta ( EMBC ) Q3 revenue rises 8.4% yr/yr, beating analyst expectations, per LSEG data

* Adjusted EPS for Q3 beats consensus, reaching $1.12, per LSEG data

* Co's adjusted EBITDA of $131 mln exceeds estimates, reflecting strong performance

Outlook

* Embecta ( EMBC ) raises fiscal 2025 revenue outlook to $1,078-$1,085 mln

* Company expects adjusted EPS for fiscal 2025 between $2.90 and $2.95

* Embecta ( EMBC ) anticipates adjusted operating margin of 30.75%-31.00% for fiscal 2025

Result Drivers

* COMMERCIAL EXECUTION - Embecta ( EMBC ) attributes Q3 revenue growth to solid commercial execution and timing of customer orders

* ERP IMPLEMENTATION - Successful implementation of ERP system and operationalization of distribution centers in India completed a multi-year separation program

* PRODUCT EXPANSION - Signed contracts for co-packaging pen needles with potential generic GLP-1 drugs, expanding product portfolio

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $295.50 $278.20

Revenue mln mln (4

Analysts

)

Q3 Beat $1.12 $0.78 (4

Adjusted Analysts

EPS )

Q3 EPS $0.78

Q3 Beat $131 mln $102.70

Adjusted mln (4

EBITDA Analysts

)

Q3 Beat $109.10 $86.80

Adjusted mln mln (4

Operatin Analysts

g Income )

Q3 $198.60

Adjusted mln

Gross

Profit

Q3 $0.15

Dividend

Q3 Gross $197.10

Profit mln

Q3 $94 mln

Operatin

g Income

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 ( EMBC ) is $18.00, about 42.4% above its August 7 closing price of $10.36

* The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 4 three months ago

Press Release:

(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.)