By Catalent, a prominent drug manufacturer, has shared its positive outlook regarding revenue for fiscal year 2024. Additionally, the company has reached a settlement with activist investor Elliott Investment Management. This settlement includes a comprehensive review of Catalent’s business strategy.
Earnings Report and Analyst Expectations
During the fourth fiscal quarter that ended in June, Catalent reported earnings of 9 cents per share. However, analysts had projected earnings of 11 cents per share. Although the company’s revenue of $1.07 billion exceeded analysts’ expectations of $1.05 billion, it still experienced a 17% decline compared to the same quarter in the previous year.
Market Response
As a result of the positive news, Catalent’s stock rose by 3.4% to $47.20 during premarket trading on Tuesday.
Promising Revenue Forecast
Catalent has provided an estimated revenue projection for fiscal year 2024, expecting it to range between $4.3 billion and $4.5 billion. This projected revenue surpasses the analysts’ estimates of $4.2 billion.
Settlement with Elliott Investment Management
Catalent has successfully reached a settlement agreement with activist investor Elliott. As part of this agreement, four new independent directors will be added to Catalent’s board. Furthermore, a committee will be established to conduct a thorough review of the company’s strategy.
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