Lonza Earnings: Trims Near-Term Outlook on Slower Growth; Shares Undervalued for Long-Term Investors

Lonza trimmed its 2023 outlook to mid- to high-single-digit sales growth (from high single digits) and 28%-29% core EBITDA margin, due to slower growth in early-stage services and a decrease in demand for nutraceutical capsules. The reduction of core EBITDA margin reflected a 6.5% decrease from the midpoint of management’s previously issued guidance. Investors reacted negatively and sent shares down 11%.