Catalent sees lower Covid-related product revenue in 2023

The pharmaceutical group shared a revenue forecast for 2023 that missed expectations

The actions of Catalent Inc. (NYSE: CTLC) are down 1.7% at $98 this morning following the pharmaceutical company’s fiscal fourth quarter earnings report. While Catalent’s adjusted earnings of $1.19 per share beat analysts’ estimates, its revenue fell short of expectations. The company’s fiscal 2023 revenue forecast also missed the mark, after saying it expects revenue from Covid-19 products to decline in the coming year.

The stock saw a dramatic drop from its high in late July and a subsequent attempt to recover towards that level in mid-August. The stock fell below recent support at the 30-day moving average just a week after its August surge, and last week the 100-day moving average appeared as another high on the charts. Additionally, today’s decline has equity set to reopen below a floor at the $99 level. Since the beginning of the year, CTLT has lost 22.1%.

Analysts have yet to comment, although it could only be a matter of time if the share’s dismal price action continues. Of the 11 covered, 10 consider CTLT a “buy” or better. Additionally, the 12-month consensus price target of $136.85 is a hefty 37.3% premium to last night’s close.

Short sellers, meanwhile, have jumped ship over the past month, dropping almost 21% in the latest reporting period. The 3.13 million shares sold short represent a measly 1.8% of the stock’s free float, or just under three days of pent-up buying power.