Embecta shares rise over 2% as third quarter results surpass expectations

Published 08/08/2025, 11:36
 Embecta shares rise over 2% as third quarter results surpass expectations

PARSIPPANY, N.J. - On Friday, Embecta Corp. (NASDAQ:EMBC) reported third-quarter results that significantly exceeded analyst expectations, driven by strong commercial execution and favorable timing of customer orders.

The company’s shares climbed 2.32% in after hours trading following the release.

The global diabetes care company reported adjusted earnings of $1.12 per share for its fiscal third quarter ended June 30, 2025, handily beating the analyst consensus of $0.77. Revenue reached $295.5 million, surpassing the $278.15 million expected by analysts and representing an 8.4% increase YoY. The company’s U.S. revenues grew 11.6%, while international revenues increased 5.0%.

"Q3 was a strong quarter for embecta, reflecting solid commercial execution, aided in part by the timing of customer orders," said Devdatt Kurdikar, President and CEO of embecta. "Despite an increasingly complex and dynamic geopolitical environment, given the year-to-date performance and our outlook for the remainder of the year, we are tightening and raising our fiscal 2025 outlook for key financial metrics."

The company’s adjusted operating income margin expanded to 36.9% from 30.6% in the prior-year period, while adjusted EBITDA margin improved to 44.3% from 36.4%.

Following the strong performance, embecta raised its full-year guidance, now expecting adjusted earnings of $2.90 to $2.95 per share, above the analyst consensus of $2.83. The company also tightened its revenue forecast to $1.078-1.085 billion, in line with the consensus of $1.08 billion.

During the quarter, embecta implemented its ERP system and operationalized its own distribution centers and shared services in India, marking the completion of its separation program. The company also made progress on expanding availability of appropriately sized GLP-1 retail packaging for use with weekly injection therapies.

"We remain focused on executing on the value creation drivers we highlighted at our recent Analyst and Investor Day, including our long-term goal of transforming embecta into a diversified medical supplies company," Kurdikar added.

The company also announced a quarterly dividend of $0.15 per share, payable on September 15, 2025, to stockholders of record as of August 29, 2025.

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