Embecta (NASDAQ:EMBC) Posts Earnings Results, Beats Expectations 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) issued its quarterly earnings results on Friday. The company reported $1.12 earnings per share for the quarter, topping the consensus estimate of $0.77 by $0.35, Zacks reports. The business had revenue of $295.50 million during the quarter, compared to the consensus estimate of $278.15 million. Embecta had a negative return on equity of 23.40% and a net margin of 7.58%. The company's quarterly revenue was up 8.4% on a year-over-year basis. During the same quarter last year, the company earned $0.74 earnings per share. Embecta updated its FY 2025 guidance to 2.900-2.950 EPS.

Embecta Stock Down 0.5%

Shares of NASDAQ:EMBC traded down $0.07 during trading on Thursday, hitting $13.87. The stock had a trading volume of 777,298 shares, compared to its average volume of 712,710. Embecta has a 12-month low of $9.20 and a 12-month high of $21.48. The stock has a market capitalization of $811.26 million, a price-to-earnings ratio of 9.70, a price-to-earnings-growth ratio of 0.77 and a beta of 1.08. The stock has a 50-day simple moving average of $10.49 and a two-hundred day simple moving average of $12.23.

Embecta Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Friday, August 29th will be paid a $0.15 dividend. This represents a $0.60 annualized dividend and a dividend yield of 4.3%. The ex-dividend date is Friday, August 29th. Embecta's dividend payout ratio (DPR) is presently 41.96%.

Insider Activity

In related news, Director David F. Melcher purchased 10,000 shares of Embecta stock in a transaction that occurred on Friday, May 23rd. The stock was bought at an average cost of $10.60 per share, for a total transaction of $106,000.00. Following the completion of the transaction, the director owned 86,681 shares in the company, valued at $918,818.60. The trade was a 13.04% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. 0.42% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of EMBC. Gabelli Funds LLC purchased a new position in Embecta during the second quarter valued at approximately $2,068,000. Squarepoint Ops LLC raised its position in Embecta by 103.6% during the second quarter. Squarepoint Ops LLC now owns 403,412 shares of the company's stock valued at $3,909,000 after acquiring an additional 205,311 shares in the last quarter. Qube Research & Technologies Ltd raised its position in Embecta by 83.0% during the second quarter. Qube Research & Technologies Ltd now owns 362,935 shares of the company's stock valued at $3,517,000 after acquiring an additional 164,570 shares in the last quarter. Jane Street Group LLC raised its position in Embecta by 224.0% during the first 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, Gamco Investors INC. ET AL purchased a new position in Embecta during the second quarter valued at approximately $407,000. 93.83% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities research analysts have weighed in on the company. BTIG Research set a $25.00 price target on Embecta and gave the stock a "buy" rating in a report on Friday, May 23rd. Mizuho reduced their price objective on Embecta from $13.00 to $12.00 and set a "neutral" rating for the company in a research note on Wednesday, July 16th. Finally, Wall Street Zen upgraded Embecta from a "hold" rating to a "buy" rating in a research note on Thursday, May 22nd.

About Embecta

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.