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NEW YORK - Embecta Corp. (NASDAQ:EMBC) reported better-than-expected second quarter results on Friday, as the diabetes care company beat analyst estimates for both earnings and revenue.
However, the company’s stock was unchanged in pre-market trading following the release.
The company posted adjusted earnings per share of $0.70 for the quarter ended March 31, surpassing the analyst consensus of $0.53. Revenue came in at $259 million, above Wall Street expectations of $253.86 million.
Despite the earnings beat, Embecta’s revenue declined 9.8% YoY on a reported basis and 7.7% on an adjusted constant currency basis. The company cited challenging market conditions but noted its financial results were slightly ahead of prior expectations.
"This quarter’s financial results were once again slightly ahead of our prior expectations, as our teams executed well, which included driving an acceleration in our free-cash flow generation, thereby allowing us to continue to repay debt and create additional balance sheet flexibility," said Devdatt Kurdikar, President and CEO of Embecta.
For the full fiscal year 2025, Embecta maintained its adjusted earnings per share guidance of $2.70 to $2.90, in line with the analyst consensus of $2.82. The company narrowed its revenue outlook to $1.073-$1.090 billion, compared to its previous forecast of $1.075-$1.092 billion and the consensus estimate of $1.09 billion.
Embecta also announced it is raising key profitability metrics while maintaining its prior adjusted earnings per share guidance, despite lowering its fiscal year 2025 adjusted constant currency revenue guidance range. The company cited favorable projected foreign exchange rates and disciplined operating expense controls as offsetting factors.
The diabetes care specialist continues to focus on executing its strategic priorities, including strengthening its core business, expanding its product portfolio, and increasing financial flexibility. Embecta plans to share more details at its upcoming Analyst & Investor Day on May 22, 2025.
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