Overview
Organon Q3 revenue of $1.602 bln beats analyst expectations, up 1% yr/yr
Adjusted EPS for Q3 beats consensus at $1.01
Company lowers full-year 2025 revenue and adjusted EBITDA margin guidance
Outlook
Organon lowers full-year 2025 revenue guidance to $6.200 bln - $6.250 bln
Company revises full-year 2025 adjusted EBITDA margin guidance to ~31.0%
Result Drivers
BIOSIMILARS GROWTH - Biosimilars revenue increased 19% driven by Hadlima and favorable timing of an international tender for Ontruzant
WOMEN'S HEALTH DECLINE - Women's Health revenue declined 3% due to lower demand for Nexplanon in the U.S., offset partially by growth in other products
ESTABLISHED BRANDS CHALLENGES - Established Brands revenue faced declines due to loss of exclusivity and pricing pressures in the respiratory portfolio
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $1.60 bln | $1.57 bln (5 Analysts) |
Q3 Adjusted EPS | Beat | $1.01 | $0.94 (6 Analysts) |
Q3 EPS | $0.61 | ||
Q3 Adjusted Net Income | Beat | $263 mln | $245.27 mln (5 Analysts) |
Q3 Net Income | $160 mln | ||
Q3 Adjusted EBITDA | Beat | $518 mln | $472 mln (3 Analysts) |
Q3 Gross Margin | 53.50% | ||
Q3 Adjusted EBITDA Margin | 32.30% |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "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 $10.50, about 35.4% above its November 7 closing price of $6.78
The stock recently traded at 2 times the next 12-month earnings vs. a P/E of 2 three months ago
Press Release: ID:nBwSFLbba
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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.)