What happened
Specialty healthcare-company Catalent (CTLT -0.04%) was looking anything but special to investors on Tuesday. Its share price saw a queasy drop of nearly 25% on the day, following the release of dispiriting quarterly results.
So what
For its first quarter of fiscal 2023, Catalent booked net revenue of $1.02 billion. This was essentially flat on a year-over-year basis. More alarmingly, non-GAAP (adjusted) net income declined by 52% over that stretch to hit $61 million, or $0.34 per share.
Both of those figures missed analyst estimates by quite some distance. On average, prognosticators tracking the stock were anticipating $1.08 billion on the top line and a much higher per-share, adjusted net income of $0.58.
Catalent, which has an interesting niche as a provider of delivery and development solutions for healthcare companies, saw a slump in biologics -- the larger of its two reporting segments. That operation's net revenue fell 2% to $523 million for the period. This was offset by an 11% gain for pharma and consumer health, which took in $499 million.
Now what
Compounding that precipitous drop in profitability, Catalent lowered its full-year guidance for both net revenue and adjusted net income.
For the former, it's now expecting $4.625 billion to $4.875 billion; previously, it was guiding for a range of $4.975 billion to $5.225 billion. As for adjusted net income, that's now anticipated to come in at $567 million to $648 million, which is quite some distance down from the previous forecast of $660 million to $730 million.
