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Why is Avid Bioservices Inc (CDMO) Stock down?
Shares of Avid Bioservices Inc (CDMO) dropped by 12.29% from $5.29 to $4.64 in the trading on Friday, December 8, 2023. The reason why is CDMO down today is due to the company's second-quarter financial results and adjusted guidance for fiscal 2024.
- Financial Performance Highlights: In Q2, the company reported a revenue decrease to $25.4 million from $34.7 million YoY. Operating expenses resulted in total operating losses of $11.2 million. After considering other income and expenses, the net loss for the quarter was $9.5 million. The balance sheet showed reduced cash, accounts receivable, and inventory levels.
- Strategic Developments and Outlook: Avid Bioservices Inc has completed its Cell and Gene Therapy facility construction and partnered with the California Institute of Regenerative Medicine (CIRM) for cell and gene therapy programs. While the revenue guidance for fiscal 2024 was adjusted, the company remains optimistic due to a $199 million backlog and new business bookings of $35 million. Avid Bioservices Inc aims to leverage its expanded manufacturing capacity for future growth.
Avid Bioservices' stock (CDMO) fell 11.75% on Thursday. The reduction occurred following the announcement of the biologics contract development and manufacturing organization's fourth-quarter and full-year fiscal 2023 profits. The fourth-quarter EPS was $0.00, down from $1.65 in fiscal year 2022's fourth quarter. The full-year EPS was $0.01, compared to $1.84 in 2022. Increased expenses for salaries and benefits, legal, accounting, and other professional services were cited as causes for the lower EPS.
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