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EMBC Earning Date, Transcript Summary & Report

Embecta Corp
$
14.850
-1.300(-8.050%)

EMBC Earnings Prediction

The chart below shows how EMBC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, EMBC sees a -5.18% change in stock price 10 days leading up to the earnings, and a -6.53% change 10 days following the report. On the earnings day itself, the stock moves by +7.40%. This data can give you a slight idea of what to expect for the next quarter's release.

EMBC Key Earning Data

2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
261.90M
-5.55%
-8.46%
Gross Margin
61.36%
-8.28%
2.49%
Operating Margin
18.90%
10.59%
-1.31%
Net Margin
0.00%
-100.00%
-100.00%
EPS
0.00
-100.00%
-100.00%
No Data Available

EMBC Earnings Analysis

Embecta Corp Corporation (EMBC.O) Earnings Conference Call

Positive

  • Earnings Per Share Beat: Embecta Corp. reported an adjusted EPS of $0.65, exceeding expectations of $0.45, indicating strong financial performance in Q1 2025.

  • Operating Income Improvement: The company achieved an adjusted operating income of $80.5 million, reflecting a year-over-year increase from $77.5 million, resulting in an improved adjusted operating margin of 30.7%.

  • EBITDA Margin Improvement: Adjusted EBITDA for Q1 2025 was approximately $97.3 million, with a margin of 37.2%, up from $90.4 million and 32.6% in the prior year period, showcasing operational efficiency.

  • Debt Reduction Strategy: Embecta Corp. successfully paid down approximately $32 million of term loan B debt during the quarter, contributing to a strategic goal of reducing total debt by $110 million in fiscal 2025.

  • Adjusted Operating Margin Guidance: The company raised its adjusted operating margin guidance from a range of 29%-30% to 29.5%-30.5%, reflecting ongoing initiatives to enhance operational efficiency and cost management.

Negative

  • Revenue Decline Analysis: Revenue declined 5.6% year-over-year to approximately $262 million, indicating a negative trend in sales performance.

  • Gross Profit Decline: GAAP gross profit decreased to $157.1 million with a margin of 60%, down from $185.9 million and 67% in the prior year, reflecting reduced profitability.

  • Decline in Operating Income: Operating income fell to $28.7 million with a margin of 11%, compared to $45.5 million and 16.4% in the prior year, highlighting operational challenges.

  • Net Income Decline: Net income dropped to zero from $20.1 million in the prior year, indicating a significant decline in overall profitability.

  • Fiscal 2025 Revenue Decline: Adjusted revenue guidance for fiscal 2025 anticipates a decline of 2.8% to 4.3%, reflecting ongoing challenges in revenue generation.

Key Financial Performance iconKey Financial Performance
Operating Highlights iconOperating Highlights
Risks or Challenges iconRisks or Challenges
Strategic Initiatives & Outlook iconStrategic Initiatives & Outlook
Shareholder Return Plan iconShareholder Return Plan

EMBC FAQs

How does EMBC typically perform around its earnings report dates?

EMBC's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -5.18% change leading up to the report and a -6.53% change in the 10 days following the release.

Is Embecta Corp (EMBC) Q1 2025 Earnings Call Summary positive or negative?

How can historical earnings data help predict future stock performance?

EMBC Earnings Deck

Embecta Corp. (NASDAQ:EMBC) Q1 2025 Earnings Call Transcript

EMBC Earning Call Sentiment

Embecta Corp. (NASDAQ:EMBC) Q1 2025 Earnings Call Transcript

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EMBC.O

-8.05%
Positive
The earnings call highlighted concerns with declining revenues and gross margins, despite some cost-cutting measures improving adjusted operating income. The Q&A revealed management's vague responses regarding growth opportunities, especially in the GLP-1 market, and future product timelines, indicating uncertainty. The guidance for declining revenue and gross margins in FY 2025 further suggests challenges ahead. The debt reduction plan is positive, but foreign exchange and market competition risks add to the negative sentiment. Overall, the weak financial performance and uncertain guidance are likely to result in a negative stock price reaction.