Insulin syringe maker Embecta's Q4 revenue just misses estimates

Overview

• Embecta Q4 revenue misses analyst expectations, down 7.7% yr/yr

• Adjusted EBITDA for Q4 beats analyst estimates, indicating strong operational performance

• Company announces quarterly dividend of $0.15 per share

Outlook

• Embecta expects fiscal 2026 revenue between $1,071 mln and $1,093 mln

• Company anticipates fiscal 2026 EPS of $2.80 to $3.00

• Embecta sees fiscal 2026 adjusted operating margin of 29% to 30%

Result Drivers

• ADVANCED ORDERING IMPACT - Revenue decline attributed to advanced distributor ordering in previous quarters and ongoing business dynamics in China

• PROFITABILITY IMPROVEMENT - Higher GAAP operating margin and net income year over year, exceeding adjusted operating and EBITDA margin ranges

• DEBT REDUCTION - Focus on operational efficiency and restructuring led to accelerated debt reduction and increased financial flexibility

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy."

• Wall Street's median 12-month price target for Embecta Corp is $14.00, about 4.6% below its November 24 closing price of $14.64

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 4 three months ago

Press Release: ID:nGNXbrZwx5

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