Stock Monitor: Momenta Pharma Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 27, 2018 / Active-Investors.com has just released a free earnings report on Catalent, Inc. (NYSE: CTLT).If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=CTLT. The Company reported its second quarter fiscal 2018 operating and financial results on February 05, 2018. The maker of drug delivery technologies outperformed top- and bottom-line expectations, and also announced the appointment of a new Chief Financial Officer (CFO). Register today and get access to over 1000 Free Research Reports by joining our site below:
Active-Investors.com is currently working on the research report for Momenta Pharmaceuticals, Inc. (NASDAQ: MNTA), which also belongs to the Healthcare sector as the Company Catalent. Do not miss out and become a member today for free to access this upcoming report at:
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Catalent most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
During Q2 FY18, Catalent reported revenues of $606.3 million, reflecting an increase of 25% on an as reported basis, and 22% in constant currency, from $483.7 million in Q2 FY17. The Company's revenue numbers topped analysts' estimates of $568.3 million.
During Q2 FY18, Catalent's gross margin increased 50 basis points to 31.1% from 30.6% in Q2 FY17, which was primarily attributable to a favorable product mix within the Drug Delivery Solutions segment, and the Cook Pharmica acquisition. For the reported quarter, the Company's selling, general, and administrative expenses (SG&A) were $114.3 million and represented 18.9% of revenues compared to $96.2 million, or 19.9% of revenues, in the prior year's same quarter.
For Q2 FY18, Catalent's net loss was $21.9 million, or $0.16 loss per diluted share, compared to net earnings of $17.4 million, or $0.14 per diluted share, in Q2 FY17. During the reported quarter, the Company recorded a one-time net tax charge of $46.0 million as a provisional estimate of the net accounting impact of the recently enacted US Tax Cuts and Jobs Act 2017 (TCJA). For Q2 FY18, Catalent's adjusted earnings were $60.7 million, or $0.45 per diluted share, compared to $34.7 million, or $0.27 per diluted share, in the prior year's comparable quarter; beating Wall Street's estimates of $0.34 per share.
During Q2 FY18, Catalent's earnings before interest, tax, depreciation, and amortization (EBITDA) from continuing operations increased 20% to $102.0 million from $85.2 million in Q2 FY17. The Company's adjusted EBITDA was $139.3 million, or 23.0% of revenues, in the reported quarter compared to $98.1 million, or 20.3% of revenues, in the prior year's corresponding quarter.
Business Segment Results
During Q2 FY18, Catalent's Softgel Technologies segment's revenues jumped 13%, or 9% on constant currency, to $228.1 million compared to $201.9 million in Q2 FY17. The constant-currency growth was attributable to the Accucaps acquisition in February 2017. The segment's EBITDA increased 15% to $50.1 million in Q2 FY18 versus $43.1 million in Q2 FY17, primarily driven by the acquisition of Accucaps.
For Q2 FY18, Catalent's Drug Delivery Solutions segment's revenues surged 33%, or 30% on constant currency, to $285.4 million compared to $214.0 million in Q2 FY17. The growth was primarily attributable to the Cook Pharmica acquisition which contributed 21% to the segment's revenue growth in the reported quarter. The segment's EBITDA soared 62% to $81.1 million compared to $50.0 million in Q2 FY17, driven in part by the acquisition of Cook Pharmica.
Catalent's Clinical Supply Services segment's revenues were $108.7 million for Q2 FY18, reflecting an increase of 41% on an as reported basis, or 36% in constant currency, versus $77.0 million in Q2 FY17, driven by higher volumes related to core storage and distribution services, as well as due to increased lower-margin comparator sourcing activities. The segment's EBITDA was $19.0 million in Q2 FY18, up 64% compared to $11.6 million in the prior year's same quarter. The segment's backlog was $306.0 million as of December 31, 2017, an 8% decrease compared to Q1 FY18. The segment also recorded net new business wins of $80.0 million during the reported quarter, which represented a 26% drop on a y-o-y basis. The segment's trailing-twelve-month book-to-bill ratio was 0.9.
Catalent announced the appointment of senior executive Wetteny Joseph as its Senior Vice President and CFO, effective February 06, 2018, succeeding Matt Walsh, who has announced his desire to leave the Company to assume the position of CFO of Allergan Plc.
Joseph has over 20 years of managerial, finance, accounting, and strategic experience, most recently as the President of Catalent's Clinical Supply Services business unit. He joined the Company in 2008 as its Vice President and Corporate Controller, and held senior finance positions through 2015, when he was chosen to lead the Clinical Supply Services segment.
Balance Sheet and Liquidity
As of December 31, 2017, Catalent had $2.7 billion in total debt, and $2.4 billion in total debt net of cash and short-term investments. As of December 31, 2017, Catalent's total net leverage ratio was 4.8x.
On October 18, 2017, Catalent issued $450 million aggregate principal amount of 4.875% senior unsecured notes due January 2026. The net proceeds of these notes were used, along with cash on hand and the net proceeds of a primary offering of the Company's common stock, to fund the $750 million, and a previous deposit, due at the closing of the Cook Pharmica acquisition.
Stock Performance Snapshot
February 26, 2018 - At Monday's closing bell, Catalent's stock slightly advanced 0.19%, ending the trading session at $42.92.
Volume traded for the day: 402.67 thousand shares.
Stock performance in the last three-month – up 10.28%; previous six-month period – up 21.90%; past twelve-month period – up 51.39%; and year-to-date – up 4.48%
After yesterday's close, Catalent's market cap was at $5.71 billion.
Price to Earnings (P/E) ratio was at 47.64.
The stock is part of the Healthcare sector, categorized under the Drugs - Generic industry. This sector was up 1.0% at the end of the session.
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