Avid Bioservices (CDMO), a contract manufacturer in the biotechnology industry, is scheduled to release its second-quarter financial results Monday after the closing bell. Analysts expect the company to report a loss of $0.09 per share, which marks an improvement from the $0.27 per-share loss recorded in the same period a year earlier.
Revenues of the company, which changed its name from Peregrine Pharma to Avid Bioservices in the beginning of the year, are expected to fall about 16% to $10.75 million in the second quarter. Meanwhile, analysts believe the topline performance will recover from the current slump and bounce back, in the long run, helped by the new master services agreements.
Analysts expected the company to report a loss of $0.09 per share, marking an improvement from last year’s $0.27 per-share loss
While announcing the first-quarter results, the management had reaffirmed its full-year 2019 revenue guidance in the range of $51 million to $55 million, encouraged by the progress in implementing the growth initiatives which have taken the company closer to its goal of improving margins, capacity utilization and cash flow.
Avid Bioservices remained in a net loss in the first quarter when revenues nearly halved to $12.6 million, hurt mainly by a major shipping delay. Net loss widened to $3.4 million or $0.06 per share in the first quarter from $2.6 million or $0.06 per share a year earlier.
Meanwhile, the Tustin, California-based company has received mixed ratings from analysts in the recent weeks, with the majority recommending buy with a consensus price target of $8.33.
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Healthcare contract manufacturing companies, in general, can bet on the increasing demand for medical devices and pharmaceutical products, including generic drugs, to drive growth in the coming years.
Avid shares gained about 23% since the beginning of the year and remained in the positive territory during the early trading hours Friday. Though the stock often outperformed the S&P 500 in recent months, it is struggling to recover from the multi-year lows.