Categories Earnings, Health Care
Avid Bioservices Q2 loss narrows despite lower revenues; reaffirms outlook
Avid Bioservices (CDMO) reported a narrower net loss for the second quarter of 2019, helped by a sharp decline in costs. Revenues, meanwhile, declined and missed estimates. The company also reaffirmed its full-year revenue guidance.
Net loss narrowed to $2.89 million or $0.05 per share from $14.07 million or $0.31 per share in the second quarter of 2018. Analysts had forecast a wider loss. During the quarter, manufacturing cost declined 40% to $9.8 million.
Revenues of the Tustin, California-based biotech contract manufacturer dropped 20% year-on-year to $10.18 million and fell short of expectations. The top line performance was dragged by maintenance shutdowns of manufacturing facilities and a decline in demand from two lead customers.
The top line performance was dragged by maintenance shutdowns of manufacturing facilities and a decline in demand from two lead customers
The management also reaffirmed its full-year 2019 revenue outlook in the range of $51 million to $55 million, encouraged by the progress in the implementation of various turnaround initiatives that helped the company move closer to achieving optimum capacity utilization and cash flow.
“Collectively our significant operational and commercial progress, along with diligent management of our financial resources position Avid Bioservices well for transition to cash generation and positive EBITDA,” said CEO Roger Lias. Echoing Lias’ views, market watchers had forecast that the company’s top-line will bounce back, in the long run, helped by its turnaround initiatives and new contract wins.
Moderna raises over $600-million through IPO, falls below IPO price
Avid Bioservices received mixed ratings from analysts in the recent weeks, with the majority recommending buy and setting a price target of $8.33. The healthcare contract manufacturing sector stands to benefit from the growing demand for medical devices and pharmaceutical products, including generic drugs.
The company’s shares have declined about 35% in the past twelve months. The stock closed Monday’s trading session up 1%.
Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference, and much more!
Most Popular
Important takeaways from Conagra Brands’ Q4 2025 report
Conagra Brands, Inc. (NYSE: CAG), a leading provider of consumer packaged goods, reported weaker-than-expected sales and adjusted earnings for its fourth quarter, reflecting ongoing economic uncertainty and muted consumer spending.
Delta Air Lines (DAL) gains on strong Q2 2025 performance
Shares of Delta Air Lines (NYSE: DAL) rose 12% on Thursday after the company delivered strong results for the second quarter of 2025 and restored its guidance for the full
CAG Earnings: Conagra Brands Q4 adj. profit drops, misses estimates
Conagra Brands, Inc. (NYSE: CAG), a leading provider of consumer packaged goods, reported lower sales and adjusted earnings for the fourth quarter of 2025. Results missed analysts' estimates. Net sales
Comments