What happened
Contract drug manufacturer Catalent (CTLT 0.21%) provided some very effective medicine to its investors on Tuesday. The company's shares leaped almost 5% higher following the publication of its latest set of quarterly results. That compared quite favorably to the 1.5% gain of the S&P 500 index on the day.
So what
For its fourth quarter of fiscal 2023, Catalent's revenue totaled $1.07 billion. While that was a 17% decline year over year, it exceeded the average-analyst estimate of $1.05 billion. On the bottom line, non-GAAP (adjusted) net income shrank considerably; it came in at $16 million ($0.09 per share) from the year-ago tally of $195 million. The collective prognosticator forecast was $0.11 per share.
Catalent has had numerous issues with its production lines at three factories and is seen by many to be a struggling company.
Despite this, it believes growth is in its future. It proffered full-year fiscal 2024 net-revenue guidance of $4.3 billion to $4.5 billion, which would top both the $4.28 billion of 2023 and the $4.27 billion consensus-analyst estimate. Adjusted-net income should land at $113 million to $175 million.
Now what
With its struggles and the resulting declines in its share price, Catalent has attracted takeover interest from various parties.
Also on Tuesday, the specialty healthcare company announced it had signed a "cooperation agreement" with an activist investor in the company, Elliott Investment Management. As part of the deal, Catalent added four new directors to its board of directors. One of the four is an Elliott executive -- its global head of engagement, Steven Barg.
