By Sarina Isaacs

Shares of Embecta climbed after the company said it expects earnings well above analyst estimates and announced a new restructuring plan.

The stock hit a new 52-week high of $20.80 in early trading, and was recently up about 35% at $19.46.

The Parsippany, N.J.-based company, which makes medical devices that treat diabetes, said fiscal fourth-quarter earnings came to $14.6 million, or 25 cents a share, more than doubling its profit of $6 million, or 10 cents a share, a year earlier. Revenue came to $286.1 million, up from $281.9 million in the same quarter a year earlier.

For the full year, earnings per share totaled $1.34. On an adjusted basis, Embecta booked a full-year profit of $2.45 per share, 6 cents better than the analyst consensus and above its prior guidance of $2.30 to $2.35 per share.

Embecta also said it expects to earn between $2.70 and $2.90 a share on an adjusted basis for all of 2025, easily surpassing the average analyst estimate of $2.27 per share. Revenue is anticipated at between $1.09 billion and $1.11 billion, slightly lower than analyst expectations of $1.12 billion.

Along with these results, Chief Executive Devdatt Kurkidar said in a press release that the company will discontinue its insulin patch pump program and embark on an organizational restructuring plan.

"We intend to concentrate our resources on our core business and to prioritize our free cash flow toward paying down debt, which we expect will give us the financial flexibility needed for future investments," Kurkidar said.

The company preliminarily expects the plan to incur pretax costs of between $35 million and $45 million next year.

Write to at Sarina Isaacs at sarina.isaacs@wsj.com

(END) Dow Jones Newswires

November 26, 2024 10:16 ET (15:16 GMT)

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