Catalent (CTLT) Tops Q2 EPS by 8c, Revenues Beat; Raises FY21 Revenue Guidance Above Consensus

February 2, 2021 7:17 AM EST

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Catalent (NYSE: CTLT) reported Q2 EPS of $0.63, $0.08 better than the analyst estimate of $0.55. Revenue for the quarter came in at $910.8 million versus the consensus estimate of $894.58 million.

  • Q2'21 net revenue of $910.8 million increased 26% as-reported, or 24% in constant currency, compared to Q2'20. Organic, constant currency net revenue grew 17%, compared to Q2'20.
  • Q2'21 net earnings of $88.4 million increased 94%, or 88% in constant currency, compared to Q2'20.
  • Q2'21 Adjusted EBITDA of $223.5 million increased 31% as-reported, or 28% in constant currency, compared to Q2'20.
  • Q2'21 Biologics segment net revenue of $403.9 million increased more than 75%, compared to Q2'20.
  • Increasing guidance to reflect projected net revenue growth of 23-28% and Adjusted EBITDA growth of 26-33%, compared to projected net revenue growth in previous guidance of 16-22% and Adjusted EBITDA growth of 17-26%.

“Our second quarter results reflect robust organic growth in our Biologics segment, and our increased guidance reflects our expectation of continued strong results for these offerings for the remainder of our fiscal year. Additional capacity in our drug product and drug substance offerings will come on line in the second half of our fiscal year to help fight the pandemic and serve other critical patient needs,” said John Chiminski, Chair and Chief Executive Officer of Catalent, Inc.

GUIDANCE:

Catalent sees FY2021 revenue of $3.8-3.95 billion, versus the consensus of $3.73 billion.

Catalent is raising its previously issued guidance to reflect second quarter performance and to account for higher net underlying demand, including increased demand related to COVID-19 treatments and vaccines, partially offset by lower demand in some offerings attributable to the effects of the pandemic.

The revised guidance assumes no major unforeseen change to either the current status of the COVID-19 pandemic generally or its effect on Catalent’s operations and business. The revised guidance does not assume the receipt of any vaccine or treatment order from any of our customers beyond what either has been received to date or is deemed required under executed take-or-pay arrangements. The revised guidance ranges are wider than the ranges we have forecasted in the previous few fiscal years due to the continuing uncertainty in both revenues and costs across our businesses engendered by the COVID-19 pandemic. The revised guidance projects:

  • Net revenue for fiscal 2021 in the range of $3.80 billion to $3.95 billion, compared to the previous range of $3.58 billion to $3.78 billion;
  • Adjusted EBITDA for fiscal 2021 in the range of $950 million to $1,000 million, compared to the previous range of $880 million to $950 million;
  • Adjusted Net Income for fiscal 2021 in the range of $475 million to $525 million, compared to the previous range of $410 million to $470 million; and
  • A fully diluted share count in the range of 180 million to 182 million shares on a weighted-average basis, which includes the outstanding Series A Convertible Preferred Stock as-if converted, compared to the previous range of 178 million to 180 million shares.

For earnings history and earnings-related data on Catalent (CTLT) click here.



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