Investors looking for stocks in the Medical Services sector might want to consider either Organon (OGN) or Doximity (DOCS). But which of these two stocks presents investors with the better value opportunity right now?
In the most recent trading session, Organon (OGN) closed at $10.19, indicating a +1.49% shift from the previous trading day.
Recently, Zacks.com users have been paying close attention to Organon (OGN). This makes it worthwhile to examine what the stock has in store.
Zacks.com users have recently been watching Organon (OGN) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Initiate Strong Buy on Organon & Co. with $26.4 PT, driven by cost savings, Nexplanon momentum, and biosimilars diversification offsetting Established Brands LOE. Forecasted EPS of $4.00 (FY25; +20.1% Y/Y) and $4.40 (FY26; +10.0%), well above consensus, supported by operational leverage and dividend cut for deleveraging. Transformational cost savings of >$200M by FY25 and $275M by FY26, driving margin expansion and multi-year EPS acceleration.
Organon's Q1 2025 earnings report showed significant declines across key financial metrics, leading to a drastic 30% drop in share price following a >90% dividend cut. The company's revenue shrinkage is primarily due to declining sales in its Established Brands division, exacerbated by the patent expiry of key drugs. Management's rationale for cutting the dividend to manage debt and pursue M&A opportunities appears flawed, as it fails to address core financial issues.
Recently, Zacks.com users have been paying close attention to Organon (OGN). This makes it worthwhile to examine what the stock has in store.
Organon boasted of a sub-33% dividend payout ratio.
Although the revenue and EPS for Organon (OGN) give a sense of how its business performed in the quarter ended March 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Organon & Co. (NYSE:OGN ) Q1 2025 Earnings Conference Call May 1, 2025 8:30 AM ET Company Participants Jennifer Halchak - VP, IR Kevin Ali - CEO Matt Walsh - CFO Juan Camilo Arjona Ferreira - Head of R&D Conference Call Participants David Amsellem - Piper Sandler Michael Nedelcovych - TD Cowen Ethan Brown - JPMorgan Umer Raffat - Evercore ISI Bhavin Patel - Bank of America Operator Hello, and welcome to the Organon First Quarter 2025 Earnings Call and Webcast. [Operator Instructions] I would now like to turn the conference over to Jennifer Halchak, Vice President, Investor Relations.
Organon (OGN) came out with quarterly earnings of $1.02 per share, beating the Zacks Consensus Estimate of $0.89 per share. This compares to earnings of $1.22 per share a year ago.
Looking beyond Wall Street's top -and-bottom-line estimate forecasts for Organon (OGN), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended March 2025.