U.S. Markets close in 5 hrs 40 mins

Earnings Review and Free Research Report: Catalent’s Revenue Grew 16%; Adjusted EPS Jumped 25%

Research Desk Line-up: pSivida Post Earnings Coverage

LONDON, UK / ACCESSWIRE / September 18, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Catalent, Inc. (NYSE: CTLT), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=CTLT, following the Company's announcement of its fourth quarter and fiscal 2017 financial results on August 28, 2017. The drug-delivery technology specialist outperformed top- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:


Get more of our free earnings reports coverage from other constituents of the Drugs - Generic industry. Pro-TD has currently selected pSivida Corp. (NASDAQ: PSDV) for due-diligence and potential coverage as the Company reported on September 11, 2017, its financial results for Q4 FY17 and full year FY17 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on pSivida when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on CTLT; also brushing on PSDV. With the links below you can directly download the report of your stock of interest free of charge at:



Earnings Reviewed

Catalent's Q4 FY17 revenue of $616.9 million increased 16% as reported and 19% on a constant currency basis from $532.2 million reported in Q4 FY16. For FY17, the Company's revenue was $2.08 billion and increased 12% as reported and 15% on a constant currency basis compared to the $1.85 billion recorded in FY16. All three of the Company's reporting segments posted double-digit constant-currency revenue growth for the reported quarter and fiscal year on a y-o-y basis. Catalent's quarterly revenue beat analysts' expectations of $544.4 million.

For Q4 FY 17 net earnings attributable to Catalent's were $61.8 million, or $0.49 per diluted share, compared to net earnings of $58.1 million, or $0.46 per diluted share, in Q4 FY16. The Company's adjusted net income was $82.6 million, or $0.65 per diluted share, compared to adjusted net income of $64.9 million, or $0.52 per diluted share, in the year-ago same period. Net income came in ahead of Wall Street's estimates of $0.57 per share.

For the fiscal year 2017, net earnings attributable to Catalent were $109.8 million, or $0.87 per diluted share, compared to net earnings of $111.5 million, or $0.89 per diluted share, in FY16.

During Q4 FY17, Catalent's EBITDA from continuing operations was $130.5 million, a decrease of 3% from $134.4 million in Q4 FY16. The Company's adjusted EBITDA for the reported quarter was $159.1 million, or 25.8% of revenue, compared to $141.8 million, or 26.6% of revenue, in the year-earlier corresponding quarter; which represented an increase of 12% as reported and 15% on a constant currency basis.

Catalent's Business Segment Results

During Q4 FY17, Catalent's revenue from the Softgel Technologies segment was $257.1 million, reflecting an increase of 14% as reported, or 16% on a constant currency on a y-o-y basis. The constant currency growth was attributable to higher end-market demand for prescription products in Europe. The acquisition of Accucaps contributed 14% of the segment's constant-currency revenue growth during Q4 FY17.

The Softgel Technologies segment's EBITDA was $65.2 million, an increase of 11% as reported, or 13% on a constant currency basis, in Q4 FY17 versus the year-ago same period. The increase was primarily attributable to increased volume for prescription products in Europe and North America. The acquisition of Accucaps contributed 9% of the constant-currency growth in the segment's EBITDA during the reported quarter.

For Q4 FY17, revenue from the Company's Drug Delivery Solutions segment totaled $270.2 million, up 13% as reported, or 16% on a constant currency basis, compared to the year-ago period. The growth was primarily driven by favorable end-customer demand for certain higher margin offerings within the Company's oral delivery solutions platform and increased volume related to its biologics offerings.

The Drug Delivery Solutions segment's EBITDA totaled $90.9 million, up 20% as reported or 23% on a constant currency basis, in Q4 FY17. The acquisition of Pharmatek contributed 2% of growth in the segment's EBITDA during Q4 FY17.

The Clinical Supply Services segment's revenue surged 22% as reported, or 28% on a constant currency basis, to $99.3 million for Q4 FY17, driven by higher volume related to core storage, distribution, manufacturing, and packaging services; as well as due to increased lower-margin comparator sourcing activities. During Q4 FY17, the Clinical Supply Services segment's EBITDA totaled $17.1 million, an increase of 25% as reported, or 34% on a constant currency basis.

Balance Sheet and Liquidity

As of June 30, 2017, Catalent had $2.1 billion in total debt and $1.8 billion in total debt net of cash and short-term investments, which is essentially in-line with the total and net debt levels as of March 31, 2017. As of June 30, 2017, the Company's total net leverage ratio was 4.0x, an improvement compared to the 4.2x recorded in Q3 FY17 and the 4.3x recorded at the end of FY16.


For the fiscal year 2018, Catalent is forecasting revenue in the range of $2.16 billion to $2.24 billion. The Company is expecting adjusted EBITDA in the band of $477 million to $497 million and adjusted net income to be between $192 million and $212 million. These guidance ranges continue to be consistent with the organic, constant-currency long-term CAGR growth expectations of 4% to 6% for revenue and 6% to 8% for adjusted EBITDA. Catalent is projecting self-funded capital expenditures in the range of $145 million to $155 million.

Stock Performance

Catalent's share price finished last Friday's trading session at $39.49, sliding 1.86%. A total volume of 2.03 million shares have exchanged hands, which was higher than the 3-month average volume of 1.11 million shares. The Company's stock price skyrocketed 7.02% in the last three months, 37.45% in the past six months, and 56.27% in the previous twelve months. Additionally, the stock soared 46.48% since the start of the year. Shares of the Company have a PE ratio of 45.71 and currently have a market cap of $5.04 billion.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.


The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.


PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.


This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.


For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily