Organon & Co's stock experienced a significant pre-market plunge of 8.84% on Thursday. The sharp decline occurred as the market reacted to the company's latest financial results.
The sell-off was triggered by the release of Organon's fourth-quarter earnings, which fell short of analyst expectations. The company reported an adjusted EPS of $0.63, missing the IBES estimate of $0.73. Furthermore, Q4 revenue came in at $1,507 million, below the estimated $1,539 million. The company also posted a net loss of $205 million, or a loss of $0.79 per share, for the quarter.
Other reported metrics included an adjusted EBITDA margin of 25.4%, a gross margin of 49.2%, and an adjusted net income of $165 million, which also fell short of the $192.6 million estimate. The company provided a full-year revenue outlook of $1,900 million. The widespread misses on key financial targets likely led to investor disappointment and the subsequent pre-market downturn.