Yahoo Finance Catalent (CTLT) Declines on Profit Warnings and CFO Exit
Catalent Inc.’s CTLT shares have been declining since Friday last week, following its issuance of profit warning for the third quarter of fiscal 2023. CTLT also announced the departure of its chief operating officer (CFO) and the appointment of its president, division head for Clinical Development & Supply as interim CFO.
Business Update
Catalent has cautioned about its profits taking a hit in third-quarter fiscal 2023. The company attributes this decline to productivity issues and higher-than-expected costs experienced at three of its facilities. However, Catalent is confident about its ability to overcome these challenges and attain sustainable growth in the future.
Catalent, Inc. Price
Catalent, Inc. price | Catalent, Inc. Quote
Interim CFO Appointment
The company has appointed Ricky Hopson as interim CFO, with immediate effect. Hopson was previously serving as CTLT’s senior vice president and corporate controller, and has been with the company for more than 20 years. He will succeed Thomas Castellano.
The company also expressed its confidence in Hopson's ability to effectively lead the finance department during this transitional period.
Stock Movement
The Catalent stock has declined more than 30% since Apr 13. However, Catalent’s shares are up 1% so far this year against the industry’s 1.8% decline. The S&P 500 Index has gained 8.4% in the same time period.
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Conclusion
CTLT’s business update highlights the challenges that it is facing due to rise in costs and operational challenges.
Catalent is confident about overcoming these challenges and achieving sustainable growth in the future. The appointment of Ricky Hopson as interim CFO also demonstrates the company's commitment to continuity and effective leadership during this transitional period. As CTLT awaits a permanent CFO and addresses its operational challenges, investors will look for improvements in the company’s financial performance.
Zacks Rank & Stocks to Consider
Catalent currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Becton, Dickinson and Company BDX, Henry Schein HSIC and The Cooper Companies COO. While both BDX and COO carry a Zacks Rank #2 (Buy) at present, HSIC sports a Zacks #1 Rank (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Becton, Dickinson and Company has an estimated long-term growth of 7.8%. BDX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.47%.
The company’s shares have gained 0.8% compared with the industry’s 5.9% growth in the past three months.
Henry Schein has an estimated long-term growth of 8.1%. HSIC’s earnings surpassed estimates in three of the trailing four quarters and met the same once, the average surprise being 2.97%.
The company’s shares have gained 2.6% compared with the industry’s 5.9% growth in the past three months.
The Cooper Companies has an estimated long-term growth of 11%. COO’s earnings missed estimates in three of the trailing four quarters and beat the same once, the average negative surprise being 1.82%.
The company’s shares have gained 10.1% compared with the industry’s 5.9% growth over the past three months.
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