Overview
Healthcare firm's Q4 revenue fell 5%, missing analyst expectations
Adjusted EPS for Q4 missed analyst expectations, declining 30% yr/yr
Company reported a net loss of $205 mln due to goodwill impairment
Outlook
Organon expects full-year 2026 revenue of approximately $6.2 bln
Company anticipates 2026 Adjusted EBITDA of approximately $1.9 bln
Organon sees flat constant currency revenue growth for 2026
Result Drivers
WOMEN'S HEALTH DECLINE - Revenue fell 15% due to changes in U.S. wholesaler practices, access restrictions, and increased rebates
BIOSIMILARS GROWTH - Revenue rose 11% driven by Hadlima and new product contributions
ESTABLISHED BRANDS PRESSURE - Revenue declined 2% due to pricing pressure and volume declines in respiratory products
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Miss | $1.51 bln | $1.54 bln (5 Analysts) |
Q4 Adjusted EPS | Miss | $0.63 | $0.73 (7 Analysts) |
Q4 EPS | -$0.79 | ||
Q4 Adjusted Net Income | Miss | $165 mln | $192.63 mln (5 Analysts) |
Q4 Net Income | -$205 mln | ||
Q4 Gross Margin | 49.20% | ||
Q4 Adjusted EBITDA Margin | 25.40% |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and 4 "sell" or "strong sell"
The average consensus recommendation for the pharmaceuticals peer group is "buy."
Wall Street's median 12-month price target for Organon & Co is $9.00, about 17% above its February 11 closing price of $7.69
The stock recently traded at 2 times the next 12-month earnings vs. a P/E of 2 three months ago
Press Release: ID:nBw7QXN1Ha
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)