Organon & Co. (OGN) Underperformed in the Third Quarter

Miller Value Partners, an investment management company, released its “Income Strategy” third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy returned -7.34% net of fees compared to a -0.68% return for the ICE BofA US High Yield Index. Also, the fund underperformed the S&P 500 Index which returned -4.88% in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Miller Value Partners discussed stocks like Organon & Co. (NYSE:OGN) in its Q3 2022 investor letter. Based in Jersey City, New Jersey, Organon & Co. (NYSE:OGN) is a health care company. On October 20, 2022, Organon & Co. (NYSE:OGN) stock closed at $23.56 per share. One-month return of Organon & Co. (NYSE:OGN) was -8.50% and its shares lost 33.93% of their value over the last 52 weeks. Organon & Co. (NYSE:OGN) has a market capitalization of $5.992 billion.

Miller Value Partners made the following comment about Organon & Co. (NYSE:OGN) in its Q3 2022 investor letter:

“Organon & Co. (NYSE:OGN) was the top detractor for the quarter, falling 30.0%². Organon reported 2Q22 revenue of $1.59 billion, -0.6% Y/Y, ahead of consensus of $1.54 billion, and Adjusted EPS of $1.25, -27.3% Y/Y, in-line with analyst expectations. Adjusted EBITDA for the quarter came in at $512 million (32.3% margin), compared to 2Q21 Adjusted EBITDA of $627 million (39.3% margin). Management revised FY22 guidance for revenue of $6.1-6.3 billion, compared to previous guidance for revenue of $6.1-6.4 billion, to reflect persisting foreign exchange (FX) headwinds, and Adjusted EBITDA margin of 32-34%, compared to prior guidance for a margin of 34-36%, which incorporates ~$110 million of in-process research and development (IPR&D) and milestone expenses from business development. Management’s guidance implies FY22 Adjusted EBITDA of $2.05B, at the respective midpoints, or an Enterprise Value (EV)/EBITDA multiple of ~7.0x.”

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Organon & Co. (NYSE:OGN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Organon & Co. (NYSE:OGN) at the end of the second quarter, which was 27 in the previous quarter.

We discussed Organon & Co. (NYSE:OGN) in another article and shared the list of healthcare stocks making moves after earnings. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.