Biotech/Pharma Contract Service Provider Avid Bioservices Sees Lower Than Expected Q3 Sales, Sticks To Annual Guidance
Portfolio Pulse from Vandana Singh
Avid Bioservices Inc (NASDAQ:CDMO) reported Q3 fiscal 2024 preliminary revenues of $33.8 million, an 11% decrease Y/Y, missing consensus estimates. Despite the revenue drop, attributed to fewer manufacturing runs and reduced services from early-stage customers, the company maintains its FY 2024 revenue guidance of $137-$147 million. Gross profit significantly decreased, and the company reported an operating loss, contrasting with the previous year's income. Avid Bioservices also completed its CGT facility, part of a three-year expansion, and priced $160 million of 7% Convertible Senior Notes due 2029. CDMO shares fell 29% to $6.24.
March 07, 2024 | 6:40 pm
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Avid Bioservices reported lower than expected Q3 fiscal 2024 revenues and a significant drop in gross profit, alongside an operating loss. However, it maintains its FY 2024 revenue guidance and completed a significant expansion with its CGT facility.
The reported decrease in Q3 revenues and the significant drop in gross profit, coupled with an operating loss, are likely to negatively impact investor sentiment in the short term, despite the maintenance of FY 2024 revenue guidance and the completion of the CGT facility expansion. The sharp 29% drop in share price reflects immediate market reaction to the earnings miss and operational losses.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100