Why Shares of Catalent Fell 36% This Week
Shares of Catalent (NYSE: CTLT), which provides delivery and development solutions for healthcare companies, fell 36% this week, according to data from S&P Global Intelligence. The stock closed last week at $66.18 then opened on Monday at $65.76. The stock hit its 52-week low on Thursday afternoon when it fell to $41.10, rising to only $42.40 at the close. Its 52-week high is $136.13. The stock is down more than 66% so far this year.
The stock tumbled after the company reported its fiscal 2023 first-quarter earnings on Tuesday. Revenue was down only slightly, from $1.025 billion in the first quarter last year to $1.022 billion. However, earnings took a big hit, falling to $0.00 in earnings per share (EPS) compared to $0.49 in Q1 a year ago.
The company operates in two segments. Biologics' revenue was down 5%, while Pharma and Consumer Health was up 4%. The company said that macroeconomic conditions explained the earnings drop. These conditions include inflation, an unfavorable foreign exchange rate, and short-term, cash-sensitive decisions by some of Catalent's customers.
Source Fool.com
