Shares of Organon & Co (NYSE: OGN) soared over 5% on Wednesday after the women's healthcare company reported better-than-expected third quarter revenue and raised its full-year sales forecast.
For the third quarter ended September 30th, Organon posted revenue of $1.58 billion, beating Wall Street consensus estimates of $1.56 billion. However, adjusted earnings per share of $0.87 missed expectations slightly at $0.90. The company attributed the revenue growth to continued strength across its product portfolio. Organon also narrowed its full-year 2024 revenue guidance range to $6.375 billion to $6.425 billion, up from prior guidance of $6.25 billion to $6.45 billion. The company now expects 2024 adjusted EBITDA margins of 30%-31%, versus previous guidance of 31%-33%.
Analysts were upbeat on the results, with J.P. Morgan calling Organon a "Top Pick" based on the revenue upside, growth drivers and shareholder capital return. The firm raised its price target to $27 following the print. Organon also declared a quarterly dividend of $0.28 per share, payable in December. CEO Kevin Ali commented, "Our third quarter results demonstrate the strength of our established brands and our ability to successfully execute in key growth areas." Organon shares are now up nearly 25% year-to-date.
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