Catalent (NYSE: CTLT) reported Q1 EPS of $0.41, $0.05 better than the analyst estimate of $0.36. Revenue for the quarter came in at $845.7 million versus the consensus estimate of $811.37 million.

• Q1'21 net revenue of $845.7 million increased 27% as-reported, or 26% in constant currency, compared to Q1'20. On an organic basis, constant currency net revenue in Q1'21 grew 20% compared to Q1'20.
• Q1'21 Adjusted EBITDA of $174.4 million increased 37% as-reported, or 35% in constant currency, compared to Q1'20.
• Q1'21 Biologics segment net revenue of $377.1 million doubled compared to Q1'20.
• Net debt leverage of 2.6x as of September 30; more than $1 billion in cash and cash equivalents on-hand at September 30.
• Increased guidance reflects revenue growth of 16-22% and adjusted EBITDA growth of 17-26%, compared to previous guidance of revenue growth of 12-16% and adjusted EBITDA growth of 12-19%.

“Catalent’s strong start to fiscal 2021 was driven by robust growth in our Biologics segment, which doubled its revenue year-over-year and represented 44% of Catalent's total revenue in the first quarter. Ongoing elevated demand across our drug product, drug substance and cell and gene therapy offerings, as well as new demand related to potential COVID-19 vaccines and treatments, were partially offset by headwinds in our Softgel and Oral Technologies and Oral and Specialty Delivery segments,” said John Chiminski, Chair and Chief Executive Officer of Catalent, Inc. He added, “We have accelerated our growth-related capital expenditures to meet the near-term needs of customers and patients, and to position Catalent for long-term value creation.”

GUIDANCE:

Catalent sees FY2021 revenue of $3.58-3.78 billion, versus the consensus of $3.57 billion.

Catalent is raising its previously issued guidance to reflect first 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 attributed to the effects of the pandemic in some offerings.

The revised guidance continues to assume no major change to either the current status of the COVID-19 pandemic generally or its effect on Catalent’s operations and business. Also, as with the earlier guidance, the revised guidance does not assume the receipt by any of our customers of any marketing approval, on an emergency basis or otherwise, for their COVID-19 vaccine candidates (but does include the projected revenue from take-or-pay arrangements in executed contracts). The guidance ranges set forth below are broader than in recent years due to the increased uncertainty introduced by the COVID-19 pandemic. The revised guidance projects:

• Net revenue in the range of $3.58 billion to $3.78 billion, compared to the previous range of $3.45 billion to $3.60 billion;
• Adjusted EBITDA in the range of $880 million to $950 million, compared to the previous range of $840 million to $890 million;
• Adjusted Net Income in the range of $410 million to $470 million, compared to the previous range of $390 million to $435 million; and
• A fully diluted share count in the range of 178 million to 180 million shares on a weighted-average basis, counting the Series A convertible preferred shares as-if converted, unchanged from previous guidance.

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