By Rob Curran

Embecta shares fell sharply premarket after the maker of medical supplies lowered growth projections for the fiscal year and reduced its quarterly dividend on the heels of weak second-quarter earnings.

The Parsippany, N.J., maker of insulin syringes and other medical equipment, on Tuesday posted a swing to a loss of $4.1 million, or 7 cents a share, for the quarter ended in March, from a profit of $23.5 million, or 40 cents a share, a year earlier.

Stripping out certain one-off items, the company logged adjusted earnings of 27 cents a share.

Revenue slid 14% to $221.8 million. Revenue from pen needles slid 18% to $154.7 million.

"Given our results, we have initiated a review of our cost structure and organizational footprint and expect to communicate findings and any resulting actions to investors once that process is complete," Chairman, President and Chief Executive Devdatt Kurdikar said.

Kurdikar also said the company was making progress on plans to diversify supply offerings beyond diabetes treatment.

For the fiscal year ending in September, Embecta lowered its adjusted earnings outlook to a range between $1.55 and $1.75 a share from a prior estimate of $2.80 to $3 a share. The medical-supplies company also cut its revenue projection to a range between $1.015 billion and $1.035 billion from a previous target of $1.071 billion and $1.093 billion.

Embecta slashed its quarterly dividend to a penny a share from a previous 15-cents-a-share payout. The new dividend is payable June 15 to shareholders of record on May 28.

Shares fell 26% to $6.83, premarket.

Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

May 05, 2026 08:05 ET (12:05 GMT)

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