Embecta (NASDAQ:EMBC) Releases Quarterly Earnings Results, Beats Estimates By $0.35 EPS

Key Points

• Embecta reported quarterly earnings of $1.12 EPS, beating estimates by $0.35 and achieving an 8.4% increase in revenue year-over-year.
• The company's stock surged 18.5% to reach $12.28, with significant trading volume exceeding its average.
• Embecta declared a quarterly dividend of $0.15 per share, reflecting a 4.9% yield and an annual payout ratio of 66.67%.

Embecta (NASDAQ:EMBC - Get Free Report) released its quarterly earnings results on Friday. The company reported $1.12 EPS for the quarter, beating analysts' consensus estimates of $0.77 by $0.35, Zacks reports. The firm had revenue of $295.50 million for the quarter, compared to analyst estimates of $278.15 million. Embecta had a net margin of 7.58% and a negative return on equity of 23.40%. The company's revenue for the quarter was up 8.4% compared to the same quarter last year. During the same period in the previous year, the business earned $0.74 earnings per share. Embecta updated its FY 2025 guidance to 2.900-2.950 EPS.

Embecta Stock Up 3.7%

EMBC stock traded up $0.47 during midday trading on Tuesday, reaching $13.20. The company's stock had a trading volume of 293,875 shares, compared to its average volume of 600,577. The business's 50-day simple moving average is $10.29 and its 200-day simple moving average is $12.25. The stock has a market cap of $771.41 million, a PE ratio of 9.22, a price-to-earnings-growth ratio of 0.79 and a beta of 1.08. Embecta has a 52 week low of $9.20 and a 52 week high of $21.48.

Embecta Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Friday, August 29th will be paid a $0.15 dividend. The ex-dividend date of this dividend is Friday, August 29th. This represents a $0.60 dividend on an annualized basis and a yield of 4.5%. Embecta's dividend payout ratio (DPR) is presently 41.96%.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on EMBC. Wall Street Zen upgraded shares of Embecta from a "hold" rating to a "buy" rating in a research note on Thursday, May 22nd. Mizuho cut their price objective on Embecta from $13.00 to $12.00 and set a "neutral" rating for the company in a research report on Wednesday, July 16th. Finally, BTIG Research set a $25.00 target price on Embecta and gave the stock a "buy" rating in a report on Friday, May 23rd.

Insider Activity

In related news, Director David F. Melcher acquired 10,000 shares of the company's stock in a transaction that occurred on Friday, May 23rd. The stock was acquired at an average price of $10.60 per share, for a total transaction of $106,000.00. Following the completion of the acquisition, the director owned 86,681 shares of the company's stock, valued at $918,818.60. This trade represents a 13.04% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. 0.42% of the stock is owned by corporate insiders.

Institutional Trading of Embecta

Hedge funds have recently modified their holdings of the company. Royal Bank of Canada grew its holdings in shares of Embecta by 38.3% in the 1st quarter. Royal Bank of Canada now owns 18,201 shares of the company's stock valued at $232,000 after buying an additional 5,036 shares during the period. Creative Planning lifted its position in Embecta by 40.0% in the 2nd quarter. Creative Planning now owns 35,791 shares of the company's stock valued at $347,000 after acquiring an additional 10,229 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Embecta by 2.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 49,323 shares of the company's stock valued at $629,000 after acquiring an additional 1,159 shares in the last quarter. Jane Street Group LLC lifted its position in Embecta by 224.0% in the 1st quarter. Jane Street Group LLC now owns 132,688 shares of the company's stock valued at $1,692,000 after acquiring an additional 91,729 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Embecta by 4.8% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 172,173 shares of the company's stock valued at $2,195,000 after acquiring an additional 7,894 shares in the last quarter. 93.83% of the stock is currently owned by institutional investors and hedge funds.

Embecta Company Profile

Embecta Corp., a medical device company, focuses on the provision of various solutions to enhance the health and wellbeing of people living with diabetes. Its products include pen needles, syringes, and safety injection devices, as well as digital applications to assist people with managing patient's diabetes.