Organon Q3 earnings match estimates as Sun merger pends

Organon (OGN) reported third-quarter adjusted earnings of 94 cents per share, in line with the 94-cent consensus estimate compiled by Finnhub, according to a supplemental financial information exhibit filed with a regulatory filing on Oct. 30. The figure compares with $1.01 a year earlier.

The company has suspended its usual practice of issuing an earnings press release and hosting an earnings call because of its pending merger with Sun Pharmaceutical Industries Limited, the company said. Instead, it released the supplemental non-GAAP metrics alongside its quarterly report for the period ended Sept. 30.

Here's how the company did:

• Adjusted EPS: 94 cents vs. $1.01 a year earlier, in line with the 94-cent consensus estimate compiled by Finnhub
• Adjusted EBITDA: $502 million vs. $518 million a year earlier
• Adjusted net income: $256 million vs. $263 million a year earlier
• GAAP diluted EPS: 60 cents vs. 61 cents a year earlier
• GAAP net income: $164 million vs. $160 million a year earlier

Adjusted EBITDA margin was 31.9%, compared with 32.3% a year earlier. Adjusted gross margin was 59.6%, against 60.3%.

Costs from exiting manufacturing and supply agreements with Merck & Co., Inc. were $23 million in the quarter, compared with $46 million a year earlier. Other costs included $19 million related to the pending transaction with Sun Pharmaceutical Industries Limited.

For the first nine months, adjusted EBITDA was $1.38 billion, down from $1.52 billion a year earlier. Adjusted diluted EPS was $2.51, compared with $3.03.

The company said the supplemental measures should be read together with its GAAP financial statements and the quarterly report.