Catalent (NYSE:CTLT) shares fell 30% in premarket Monday after the inhaler maker delayed its third-quarter results and slashed its full-year outlook.
The company was previously scheduled to report on May 9 but it now expects to report on May 15. Last month, Catalent said it expects that productivity issues and higher-than-expected costs experienced at three of its facilities would hurt Q3 results and the full-year outlook.
Catalent has now provided an update and said it “expects to significantly reduce both its fiscal 2023 net revenue and Adjusted EBITDA guidance by more than $400 million each.” Moreover, Catalent “has also since identified significant issues with its forecasts over the past year, which are currently being addressed.”
“We understand the importance of timely financial reporting and apologize for the inconvenience caused by this delay in our quarterly filing and investor conference call. We are dissatisfied with our recent results and are taking the necessary steps to address the issues that negatively impacted our performance, which fell well short of our prior projections,” said Alessandro Maselli, president and chief executive officer of Catalent.
For Stephens analysts, the forecasting issue “raises a variety of questions” and is “the latest (and perhaps largest) shoe to drop at CTLT."
Catalent also noted a goodwill impairment in the consumer health business of more than $200M, which is related to the acquisition of Bettera Wellness.