Stock Alert: Catalent Inc. (CTLT) Shares Hit 52-Week High

(RTTNews) - Shares of Catalent Inc. (CTLT) touched a 52-week high of $68.78, following the company's announcement of upbeat Q2 results, updated FY guidance, and its MaSTherCell acquisition.

Today, the company reported Q2 net income of $45.5 million or $0.23 per share versus $49.0 million or $0.33 per share last year.

Adjusted net income was $72.0 million or $0.45 per share compared to $65.4 million or $0.45 per share in the second quarter a year ago.

Second quarter 2020 revenue of $721.4 million increased 16% as reported, or 17% in constant currency, from the $623.0 million reported in the second quarter a year ago, primarily driven by the impact of the company's gene therapy acquisitions, as well as organic growth within the Biologics, Softgel and Oral Technologies, and Clinical Supply Services segments, offset by a decline in the Oral and Specialty Delivery segment.

Analysts polled by Thomson Reuters expected earnings of $0.44 per share on revenue of $699.51 million for the quarter. Analysts' estimates typically exclude certain special items.

The company raised its fiscal 2020 revenue guidance to a range of $2.87 billion - $2.95 billion from the previous outlook range of $2.78 billion - $2.88 billion, and adjusted net income to a range of $307 million - $331 million from prior issued outlook range of $300 million - $330 million. Nine Wall Street analysts have a consensus revenue estimate of $2.85 billion for 2020.

Further, the company agreed to acquire MaSTherCell Global, a company backed by Great Point Partners, SFPI-FPIM, and Orgenesis Inc. (ORGS), for $315 million. Catalent expects to finance the all-cash deal either a partial drawn down of its revolving credit facility or the proceeds from future capital-raising activity. The company has obtained $200 million of committed financing from JPMorgan Chase Bank N.A.