Shares of drug manufacturer Catalent (NYSE:CTLT) declined Friday morning after telling investors it will provide a business update today instead of a normal review of its third-quarter results. This was the third time Catalent delayed the earnings release, once again citing problems with accounting adjustments.
Catalent provided updated guidance to investors in slides ahead of a presentation and further slashed the forecast for revenue, Ebitda and net income. Catalent said its previous forecast was overly optimistic and underestimated costs and macro impacts including biotech funding.
Net revenue guidance was lowered from $4.625-$4.875 billion to $4.25-$4.35 billion. Adjusted Ebitda was lowered from $1,220-$1,300M to $725-775M. And adjusted net income was lowered from $567-$648M to $187-$228M.
The company said, “Guidance lowered to reflect expected Q3 results (including pandemic-related raw material reserves), operational challenges, higher-than-expected costs, and more rigorous and disciplined forecast. Assumes accounting treatment for potential commercial gene therapy product remains on percentage of completion basis.”
Catalent on May 8 warned that it would lower adjusted net revenue and Adjusted EBITDA guidance by more than $400M each, and some investors may view today’s guidance as worse than expected.
The drug manufacturer also received a compliance notice from the NYSE related to its delayed earnings reports and related filings.
Shares of Catalent declined by over 6%.