Why Catalent Stock Is Tumbling Today

Catalent Inc (NASDAQ: CTLT) will be delaying the release of its third fiscal quarter results and investor conference call, previously scheduled for Tuesday, May 9, 2023.

The company expects to file its Quarterly Report on Form 10-Q on May 15, 2023.

In April, Catalent reported productivity challenges and higher-than-expected costs at its drug product and drug substance manufacturing facilities in Bloomington, Indiana, and Brussels, Belgium.

Life-sciences company Danaher Corporation (NYSE: DHR) also stopped considering acquiring Catalent after expressing interest in buying the company earlier this year.

View more earnings on CTLT

The company noted that the productivity issues would materially impact its Q3 results and outlook for the remainder of fiscal 2023.

In addition to these operational challenges, the company has identified significant issues with its forecasts over the past year, which are currently being addressed.

When combining the operational and productivity issues, the prior forecasting challenges, and the potential non-cash adjustments, the company expects to significantly reduce its fiscal 2023 net revenue and adjusted EBITDA guidance by more than $400 million each.

In addition, Catalent expects that its income statement and balance sheet will reflect a goodwill impairment in consumer health business of more than $200 million, primarily related to its October 2021 acquisition of Bettera Wellness.

Price Action: CTLT shares are down 24.4% at $36.08 during the premarket session on the last check Monday.

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This article Why Catalent Stock Is Tumbling Today originally appeared on Benzinga.com


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