Organon Beats On Q1, Women's Health Leads the Charge
Portfolio Pulse from Lekha Gupta
Organon & Co (NYSE:OGN) reported a first-quarter revenue of $1.622 billion, a 5% increase year-over-year, surpassing the consensus of $1.563 billion. The growth was led by an 11% increase in Women's Health revenue, notably from Nexplanon, and a 46% surge in Biosimilar revenue, driven by Ontruzant and Renflexis. Despite a flat performance in Established Brands, the company beat adjusted EPS estimates with $1.22 against a consensus of $0.93. However, adjusted gross margin and EBITDA margin saw slight declines. Organon declared a quarterly dividend of $0.28 per share and reaffirmed its FY24 revenue guidance of $6.2 billion to $6.5 billion. OGN shares rose 2.18% to $19.24. Exposure to Organon's stock can also be gained through SPDR S&P Pharmaceuticals ETF (NYSE:XPH) and Invesco S&P SmallCap Health Care ETF (NASDAQ:PSCH).
May 02, 2024 | 5:58 pm
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POSITIVE IMPACT
Organon reported a strong Q1 with revenue and EPS beating estimates, driven by growth in Women's Health and Biosimilars. Declared a quarterly dividend of $0.28 per share and reaffirmed FY24 guidance.
The positive earnings report, coupled with a dividend declaration and reaffirmed guidance, suggests a strong financial health and operational performance, likely leading to a positive short-term impact on OGN's stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Invesco S&P SmallCap Health Care ETF (PSCH) may benefit from Organon's Q1 earnings beat, as it provides exposure to the stock.
PSCH, which offers exposure to Organon, is likely to see a positive impact from Organon's better-than-expected Q1 results, contributing to the ETF's performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
SPDR S&P Pharmaceuticals ETF (XPH), which includes Organon as part of its holdings, may see a positive impact due to Organon's strong Q1 performance.
Given that XPH holds Organon within its portfolio, the strong performance of Organon is likely to contribute positively to the ETF's value in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70