Why Embecta Stock Is Sinking Today
Shares of Embecta (NASDAQ: EMBC.V) were sinking 12.4% lower as of 10:52 a.m. ET on Tuesday. The decline came after the diabetes care provider announced its fourth-quarter results earlier in the morning.
Embecta reported Q4 revenue of $274.6 million, down 8.7% year over year. This topped the average analysts' revenue estimate of $261 million. The company posted a net loss in the fourth quarter of $17.2 million, or $0.30 per share. Analysts were expecting positive earnings of between $0.61 and $0.72 per share.
Embecta's lower-than-expected Q4 bottom-line results came with an asterisk. The company recorded an impairment charge of $58.9 million after throwing in the towel on some U.S. manufacturing production lines. It also wrote off $5.5 million related to purchase commitments associated with these production lines.
Source Fool.com
