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Catalent, Inc. (CTLT), headquartered in Somerset, New Jersey, is a significant provider in the pharmaceutical and biotech sectors, specializing in advanced delivery technologies, development solutions, and drug manufacturing, with a market cap of $10.7 billion. The company is set to announce its Q1 earnings on Wednesday, Nov. 20.
Ahead of the event, analysts expect CTLT to report a profit of $0.05 per share, up 125% from a loss of $0.20 in the year-ago quarter. The company has missed Wall Street's earnings estimates in three of the last four quarters while beating on one other occasion.
Its adjusted earnings of $0.57 per share for the last quarter surpassed the consensus estimate by 29.6%. Catalent’s earnings beat was fueled by solid demand for drug delivery technologies and expanded production capacity.
For fiscal 2025, analysts expect CTLT to report an EPS of $0.95, up 891.7% from a loss of $0.12 per share in fiscal 2024.
CTLT stock has rallied 49.9% YTD, outperforming the broader S&P 500 Index's ($SPX) 21.8% gains and the Health Care Select Sector SPDR Fund's (XLV) 9% gain over the same time frame.
Catalent announced a definitive agreement to sell its oral solids development and small-scale manufacturing facility in Somerset, NJ, to Ardena, with the deal expected to close in early 2025.
However, the stock increased marginally following its strong Q4 and full-year 2024 earnings release on Aug. 29. The company’s reported revenue of $1.30 billion significantly increased year-over-year while surpassing the Wall Street estimates.
The consensus opinion on CTLT stock is cautious, with an overall “Hold” rating. Of nine analysts covering the stock, one advises a “Strong Buy” rating, and eight advise “Hold.”
CTLT's average analyst price target is $63.42, suggesting a potential upside of 7.3% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
