Organon Analysts Cut Their Forecasts Following Q3 Results

Core Insights - Organon reported third-quarter adjusted earnings of $1.01 per share, exceeding the consensus estimate of 94 cents, and quarterly sales of $1.602 billion, surpassing Wall Street's estimate of $1.56 billion [1] - The company lowered its fiscal sales guidance from a range of $6.275 billion-$6.375 billion to $6.20 billion-$6.25 billion, which is below the consensus of $6.289 billion [1] Financial Performance - The adjusted earnings per share for the third quarter were $1.01, beating expectations [1] - Quarterly sales reached $1.602 billion, exceeding the forecast [1] Management Commentary - Joe Morrissey, the Interim CEO, emphasized the company's strengths and projected over $900 million in free cash flow for the year, while also focusing on cost discipline and debt reduction [2] - The management aims to create additional balance sheet capacity to pursue growth opportunities in women's health [2] Stock Performance - Following the earnings announcement, Organon shares fell by 3.4%, trading at $7.44 [2] Analyst Ratings - Morgan Stanley's Terence Flynn maintained an Equal-Weight rating and reduced the price target from $10 to $9 [5] - JP Morgan's Chris Schott kept an Underweight rating and lowered the price target from $14 to $12 [5]