Catalent's Activist Board Presence To Boost Operational Recovery, Analyst Says
Portfolio Pulse from Vandana Singh
Catalent Inc (NYSE:CTLT) reported Q4 adjusted EPS of $0.09, missing the consensus of $0.10, with sales of $1.07 billion, down 17% Y/Y. The company forecasts FY24 sales of $4.30 billion-$4.50 billion. Catalent also finalized a deal with activist investor Elliott Investment Management. William Blair analysts believe that the activist presence on Catalent's board will speed up the company's operational recovery. However, the company's margin outlook did not meet William Blair's expectations, projecting a mere 1% growth in adjusted EBITDA from the low 2023 levels.
August 30, 2023 | 5:27 pm
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NEUTRAL IMPACT
Catalent's Q4 earnings missed consensus and the company's margin outlook did not meet expectations. However, the presence of an activist investor on the board is expected to speed up operational recovery.
Catalent's Q4 earnings miss and disappointing margin outlook may negatively impact the stock. However, the presence of an activist investor on the board, which is expected to speed up operational recovery, could offset this negative impact.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100