Catalent Inc (NYSE:CTLT) shares jumped by as much as 13.12% on Monday’s trading session after the company posted an upbeat fourth quarter and full year earnings report for the year 2017 that beat most analyst estimates.
The New Jersey-based company is known for being a delivery technologies and development solutions provider for biologics and consumer products, animal health products, and drugs. For the fourth quarter, the company posted an adjusted earnings if $0.65 on a revenue of $616.90 million beating most analysts forecasts by $0.08 per share. The revenue was also $67 million higher than most analyst estimates.
The earnings represent a jump of 16% in their quarterly earnings and 19% rise in constant currency from $532.2 million during the same quarter last year. Catalent Inc fourth quarter net earnings for the year came in at $61.8 million or around $0.49 per diluted share. This is versus the net income during the same period last year of $58.1 million or $0.46 per diluted share.
The company’s total revenue for the fiscal year 2017 came in 12% higher at $2.075 billion. However, their fiscal year net earnings were slightly lower compared to last year at $0.89 per diluted share to this year’s $0.87 per diluted share.
Catalent’s revenue from their Softel Technologies business jumped by 14% for the fourth fiscal quarter to $257.1 million compared to the same quarter a year ago. The growth of their revenue for this sector was attributed by the company to the higher end market demand in Europe for prescription products. For the whole year, Softgel Technologies segment revenue came at $855.3 million for the whole fiscal year which represents a jump of 10%.
The company also experienced a rise in the demand for both prescription products and consumer health products in North America that help reduce renewed demand for lower-end market demand for consumer health products in Asia Pacific.
The revenue of the company from their Clinical Supply Services business has also jumped by 22% from last year’s fourth quarter to $99.3 million. The growth was attributed to core storage, distribution, and manufacturing and packaging services’ higher volume and the rise of lower margin comparator sourcing activities.