Life Science-Focused Evotec Shares Plunge To 6 Year Lows On Gloomy Annual Forecast
Portfolio Pulse from Vandana Singh
Evotec SE (NASDAQ:EVO) shares hit a 6-year low following a gloomy annual forecast despite a 4% Y/Y revenue increase to 781.4 million euros. The company announced a priority reset aimed at optimizing its business for profitable growth in 2024, including a new reporting structure and an expected annualized EBITDA improvement of over 40 million euros. Revenues from Just–Evotec Biologics surged 111% to 108.4 million euros, but the base business excluding this segment saw a 4% decline, partly due to a severe cyber-attack. The company forecasts double-digit revenue growth and a mid-double-digit percentage EBITDA growth for 2024.
April 24, 2024 | 2:01 pm
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Evotec SE shares dropped significantly due to a gloomy annual forecast and a major business reset aimed at returning to profitable growth in 2024.
The significant share price drop reflects investor concerns over the short-term impact of the gloomy forecast and the costs associated with the business reset. Despite the positive outlook for 2024, the immediate reaction is negative due to uncertainties and the impact of the cyber-attack on its base business.
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