Shares of Embecta (EMBC.V 1.87%) were tanking on Friday, falling 13% lower as of 10:54 a.m. ET. The decline came after the diabetes care company reported its fiscal year 2024 first-quarter results.

Despite the big sell-off, Embecta reported positive Q1 results. The company generated revenue in the quarter of $277.3 million, up 0.6% year over year and better than the average analysts' estimate of $264.9 million.

Embecta also posted earnings of $20.1 million, or $0.35 per share, based on generally accepted accounting principles (GAAP). This result reflected a sharp decline from the prior-year period. However, the company's adjusted earnings per share of $0.61 million blew past the consensus Wall Street estimate of $0.45 per share.

What did investors dislike about Embecta's Q1 update?

But the stock sank, so there had to be something investors disliked about Embecta's fiscal Q1 update, right? The problem area was the company's guidance for the 2024 full fiscal year.

Sure, Embecta raised its revenue outlook from between $1.085 billion and $1.105 billion to between $1.094 billion and $1.116 billion. The midpoint of this range, though, is still a little short of the consensus full-year revenue projection of $1.1 billion.

The bigger issue was Embecta's earnings guidance. The diabetes care company expects full-year adjusted earnings per diluted share of between $1.95 and $2.15. Although this reflects a bump from the previous outlook, the top end of the range is still well below the average analysts' full-year earnings estimate of $2.22 per share.

Is Embecta a stock to buy on the pullback?

Some investors could be tempted to scoop up shares of Embecta on the pullback. However, my concern is that the company simply isn't growing enough. I think there are many other stocks to buy right now that are much better picks.