Avid Bioservices, Inc. (CDMO) on Q2 2021 Results - Earnings Call Transcript
Operator: Good day, ladies and gentlemen, and welcome to the Avid Bioservices Second Quarter Fiscal 2021 Financial Results Conference Call. As a reminder, this conference call may be recorded. I would now like to hand the conference over to Tim Brons of Avid's Investor Relations Group. Please go ahead. Tim Brons: Thank you. Good afternoon, and thank you for joining us. On today's call, we have Nick Green, President and CEO; Dan Hart, Chief Financial Officer; and Timothy Compton, Chief Commercial Officer. Today, we will be providing an overview of Avid Bioservices contract development and manufacturing business, including updates on corporate activities and financial results for the quarter ended October 31, 2020. After our prepared remarks, we will welcome your questions. Nick Green: Thank you, Tim. And thank you to everyone who has dialed in and to those who are participating today via webcast. I am pleased to report that the second quarter was highly productive for Avid. From a financial perspective we again beat revenue expectations and had a strong showing in other key financial metrics. In business development, we added a new process development customer, as well as another new manufacturing project from an existing customer. The company had a strong operational performance during the quarter, during which we successfully completed our annual maintenance program. More importantly, we finalized our view of expansion options and we look forward to proceeding with this important effort. Tim and I will provide additional details on business development and operations following an overview of our second quarter financial results. And for that, I’ll turn the call over to Dan. Dan Hart: Thank you, Nick. Before I begin, in addition to the brief financial overview I’ll provide on the call today, additional details on our second quarter financial results are included in our press release issued prior to this call and in our Form 10-Q which was filed today with the SEC. I'll now provide an update of our financial results from continuing operations for the second quarter ended October 31, 2020. Revenues for the second quarter of fiscal 2021 were $21.1 million, a 15% increase compared to revenues of $18.3 million recorded during the second quarter of fiscal 2020. The growth in the number and scope of in-process and/or completed manufacturing runs continue to drive our revenue growth, increase utilization, and improve our gross margin. In addition, the increase in manufacturing revenues included recognition of $1.7 million during the quarter from changes in estimated variable revenue consideration as a result of completing performance obligations for certain manufacturing projects, therefore increasing revenue recognized during the period. Timothy Compton: Nick Green: Thank you, Tim. During the second quarter, Avid’s operations continue to manufacture to plan. As we reported last quarter, we initiated our scheduled annual preventative maintenance shutdown at the end of July. And this was brought to a successful conclusion during the period. As I indicated last quarter, one of my first task at Avid was to review the company’s expansion plans as well as other ancillary requirements ahead of making our final decision with respect to the best path forward. We have now completed this review, and I am happy to report that the company is already moving forward with our expansion using a phased approach. We recently developed plans for a two-phased expansion of our Myford facility. The first phase expands the production capacity of our existing Myford North facility by the addition of a second downstream processing suite. The second phase further expands the capacity through the build out of a second manufacturing train including both upstream and downstream processing suites within Myford South. Operator: Thank you. Our first question comes from the line of Matt Hewitt with Craig-Hallum Capital Group. Your line is now open. Matt Hewit: Thank you for taking the questions and congratulations on a really strong quarter. Maybe first up, the vaccines have been hitting the news. I mean, that is one of the top items that you see these days, but I'm wondering if you could talk a little bit about the market beyond that, beyond vaccines. What are you seeing? What are you hearing from customers as far as maybe capacity constraints within the market or is that helping drive some business your way? Anything that you could help there? Nick Green: Tim, do you want to take that? Timothy Compton: Yes, sure. Thanks Matt. Thanks for the question. As you can imagine, the vaccine market has taken up a significant amount of capacity right now in the marketplace. And so certainly we look to take advantage of that having our available capacity, as well as continuing to build and expand our capacity to meet future demand as Nick just described. So there likely is a shortfall of capacity out there with the amount of capacity that's being consumed by COVID to-date. And it's not looking like that that capacity is going away. I mean, there's still a number of vaccines in development as well as therapeutics for the COVID-19 as well. Matt Hewit: That's helpful. Thank you. And then obviously with the phased approach for the build out on the expansion from Myford, I guess, what was it as you kind of looked at things, Nick what was it that drove you to the decision to kind of split things out that way? Is there any way that you can get customers to kind of lock in or maybe even help pay for some of that expansion? And then as you look out to the phase two piece, same thing there, is that – is there a situation where you could actually have customers pre-paying essentially to have access to that capacity? Nick Green: Yes. So to answer both of those questions Matt, in terms of the phased approach, I guess what we particularly liked about that approach was it has a shorter timeline than doing it all at one go. So that would take us somewhere between 18 months to 24 months to do the full Myford South expansion. So this brings the available capacity forward, which is a big benefit. And secondly also allows us to reduce the amount of immediate capital requirement. So it's only a $50 million expenditure rather than the sort of $45 million to $55 million, maybe somewhere around that, that we would do for the whole expansion of Myford South. And then on top of that, in coming forward, bringing it forward and at a lower cost, it also enables us to have sort of an interstitial step in terms of our revenue growth capability, adding that $50 million, which in turn obviously allows us to generate some additional profits in the meantime and contribute towards being able to pay for that to some degree, depending on the timing of those revenues. The idea and the concept of getting somebody else to pay, all of the people to pay. We're very fortunate that we've managed to maintain capacity ahead of demand. I think that's been some foresight within the business to do that. We certainly anticipate continuing to do that so that our clients know that as they are successful, we can continue to meet their requirements. But also I think that there is opportunity out there. We do see a lot of demand for this capacity, otherwise we wouldn't be building it and certainly see opportunities potentially to have others pay for it, but nothing I could announce right now for sure. Matt Hewit: Understood. Thank you very much. Nick Green: Thanks, Matt. Operator: Thank you. Our next question comes from the line of Paul Knight with KeyBanc. Your line is now open. Paul Knight: Hi Nick. Could you talk to the number of customers that you now have and number of products in place as well? Nick Green: Good question. I'll probably best hand that one over to Tim, who has got full detail of that one. But Tim, do you want to just pick up on the total number of customers? Timothy Compton: I actually don't have a roll up of the total number of customers, but that does continue to expand every quarter as we announced them. And when we're able to announce them quarter-by-quarter and program-by-program as well with existing customers. Paul Knight: And how many are in commercialization, Tim? Timothy Compton: Well, that's – as we, I think previously disclosed, we have one commercial customer at this point in time. Paul Knight: Okay. And then Nick, based on your long experience in the industry, what gross margin do you believe you should ultimately run at? Nick Green: So in terms of adding the new business to our existing capacity, we expect somewhere between 30% and 40% gross margin. Paul Knight: Okay. And then… Nick Green: The new additions… Paul Knight: And then as you look at these additions at Myford North, Myford South, what do you think you need to do in terms of commercialization talent that you would need to add? Or do you have the talent now? Nick Green: So in terms of, you're talking about business development to bring in those new opportunities and the like? Paul Knight: Yes. Nick Green: I think I expressed a little bit in the last quarter's call, but I think Tim and the team, and as I did also today, Tim and the team are doing an excellent job. Obviously, we have more insight into leading indicators on the business and the like, but I think as we see the team is working extraordinarily well, we brought three new clients in as many months in quarter one, another new client this quarter plus an expansion of an existing client. And as I say, we can see the pipeline going forward, hence the expansion. So I think we've got a team that's more than capable of dealing with the foreseeable future. And we may add to that, but at this moment in time, there's no immediate plans to do so. Paul Knight: Okay. And then what's your outlook in terms of do you want to go beyond monoclonal antibody manufacturing? Do you envision some of this capacity expansion in other areas like mRNA or cell and gene therapy? Nick Green: I think those are always interesting areas, again, kind of from a strategic perspective on my side first and foremost was to sort of make sure that we sort of looked after our existing client base and made sure that was strong, good relationship. Secondly, was to ensure that we have the right infrastructure and people in place to ensure that we execute in an on time, in full inspect manner for our clients. And then also to have a business development team that we believe can drive the growth. So that's kind of been the first the cornerstones of the strategy for the first period. I think we're moving nicely ahead on that one with you. And then adding to that, the expansion and then from that point forward, I think, the areas that you highlighted are always of interest maybe consider further expansion of our offering. But again, little early for us to say anything further than that. Paul Knight: And then lastly, based on your global experience, how do you feel about a company with the Southern California presence, do you have business? What are the positives and negatives regarding your presence? Nick Green: Yes, so, I mean, I've run facilities, not all over the world, but I think it's about 14 countries last time I checked. I think, as I mentioned again, I think, in the last quarter's call is California is a nice place to be right now. I think we're seeing quite a lot of sort of domestication of our supply chains of late COVID adding to the need to do that. So we've seen sort of localization rather than globalization as an outsourcing strategy amongst many of the pharmaceutical companies. In some cases, even we've seen regional purchasing by some people who literally want to stay on the West Coast and not move to the East or vice versa. So if I look at the U.S. market it’s probably the strongest market in the world in terms of pharma development. California Corridor is the very strong component of that overall market. So I think being in Southern California is not a bad place to be right now. So very happy with this as a location. Paul Knight: Thank you. Tim Brons: Thanks, Paul. Operator: Thank you. Our next question comes from the line of Jacob Johnson with Stephens. Your line is not open. Jacob Johnson: Hey, thanks. And I'll add my congrats on a really nice quarter. Maybe first, Nick, following-up on Paul's last question and on high-level strategy, if we think – as you are thinking about Avid longer term, at some point, could Avid have a presence beyond Southern California or how should we think about that? Nick Green: Yes, I think it's more than possible. I think we do have a global market. Europe and Asia are both very active markets. And if we've got a successful formula, then there's no reason why we shouldn't want to market that capability to a broader base of clients that ultimately at the end of the day custom manufacturer does benefit from some degree of localization and being close to your client in terms of project execution and transfer. So a broader geographic spread would not be out of the question from my thinking as equally a broader offering, fulfilling some of the areas that maybe we don't feel fill today. So again, first and foremost was to make sure that we got what we're doing well-honed get the expansion moving, and then we can start to look at other things where we feel we can bring value. Jacob Johnson: Got it. That makes sense. And maybe kind of a follow-up on it, tied to COVID. I think COVID has highlighted the value of U.S. pharma manufacturing. And I think maybe in coming years, we could see somewhat of an insourcing of drug manufacturing back into the U.S., is this something that Avid could benefit from at some point? Timothy Compton: I’d like to think so. Yes, I mean, I think, we've seen this happening before COVID even in small molecules. To be frank with you, we’ve seen a lot of molecules coming back from Asia back to Western manufacturers for a variety of reasons. And so obviously in terms of large molecule or biologics, I don't think anywhere near as much of the manufacturing has gone abroad as it did in small molecules, but we had already seen that trend coming back. I think politically we'd seen a strong push towards more localized supply. And then COVID on top of that, I think, has made everybody very much aware of the risks and the frailties sometimes global supply chains can have. And so I do think that we will likely benefit from that in the foreseeable future. Jacob Johnson: Great. And then, – I hope so too. Maybe just a last one for Dan. Looking at guidance, I think, it implies kind of a weaker back half versus what was a really strong first half. And certainly as you called out, we're living in an uncertain environment. But in terms of puts and takes just one thing I wanted to ask about, I think, last quarter, you got a fee for some unused reserved capacity. I think that might have been for the third quarter. Is that something that could be a bit of a headwind next quarter? And maybe if Tim wants to chime in just any comments on the effort to maybe backfill and to fill that capacity. Dan Hart: Yes, Jacob, thanks for the question. I think what I'd start with is, is we initially thought it'd be a little bit of a headwind when we exited the first quarter looking at the pipeline and our visibility into our customers essentially the demand that we're seeing and the backlog that we have on the books, we did have some puts and takes. We had the $3 million that was for the one-time fee and additionally we had $1.7 million this quarter that helped out the first half of the year. But looking at what we can see as far as the visibility into the backlog, and our customer demand and where the first half ended up, that's how we got to the $84 million to $88 million for the full year guide. Jacob Johnson: Thanks for taking the questions. Operator: Thank you. This concludes today's question-and-answer session. I will now hand the call back to Nick Green for closing remarks. Nick Green: Thank you, operator. And thank you to everyone participating on today's call. In closing, I'd like to thank all our employees at Avid. Not only have they been effective and efficient in improving the business performance, but they continue to do this in the challenging environment as a result of COVID-19. Avid’s success is dependent upon our incredible employees. And I wish to thank them for their continued efforts in adapting to the challenges which are impacting both their professional, but also their personal lives. Thank you again for participating on today's call and for your continued support of Avid Bioservices. Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.
Avid Bioservices, Inc. (NASDAQ: CDMO) Under Investigation Amid Proposed Sale
- The proposed sale of Avid Bioservices, Inc. (NASDAQ:CDMO) to GHO Capital Partners LLP and Ampersand Capital Partners at $12.50 per share is being investigated for fairness.
- Recent insider activity includes the sale of 3,843 shares by Chief Operations Officer Richieri Richard A. at $12.22 each, below the current stock price of $12.35.
- CDMO's stock volatility is highlighted by a 52-week range of $12.48 to $5.65, with a current market capitalization of approximately $789.6 million.
Avid Bioservices, Inc. (NASDAQ:CDMO) is under scrutiny as Halper Sadeh LLC investigates the fairness of its proposed sale to GHO Capital Partners LLP and Ampersand Capital Partners. The deal offers $12.50 per share in cash, raising concerns about whether the board has secured the best possible outcome for shareholders. The law firm is known for representing investors affected by securities fraud and corporate misconduct.
The investigation by Halper Sadeh LLC is particularly relevant given recent insider activity. On December 26, 2024, Richieri Richard A., CDMO's Chief Operations Officer, sold 3,843 shares at $12.22 each. This transaction price is slightly below the current stock price of $12.35, which has seen a 0.86% increase. Such insider transactions can influence perceptions of the company's valuation.
CDMO's stock has shown volatility, with a 52-week high of $12.48 and a low of $5.65. The current market capitalization stands at approximately $789.6 million. The stock's fluctuation between $12.29 and $12.35 today highlights the market's response to the ongoing investigation and proposed sale. Investors are closely watching these developments.
The trading volume for CDMO today is 882,025 shares, indicating active investor interest. This activity may be driven by the potential for increased compensation or additional disclosures as sought by Halper Sadeh LLC. The firm's history of recovering millions for defrauded investors adds weight to the investigation's potential impact on CDMO's future.
Avid Bioservices, Inc. (NASDAQ: CDMO) Under Investigation Amid Proposed Sale
- The proposed sale of Avid Bioservices, Inc. (NASDAQ:CDMO) to GHO Capital Partners LLP and Ampersand Capital Partners at $12.50 per share is being investigated for fairness.
- Recent insider activity includes the sale of 3,843 shares by Chief Operations Officer Richieri Richard A. at $12.22 each, below the current stock price of $12.35.
- CDMO's stock volatility is highlighted by a 52-week range of $12.48 to $5.65, with a current market capitalization of approximately $789.6 million.
Avid Bioservices, Inc. (NASDAQ:CDMO) is under scrutiny as Halper Sadeh LLC investigates the fairness of its proposed sale to GHO Capital Partners LLP and Ampersand Capital Partners. The deal offers $12.50 per share in cash, raising concerns about whether the board has secured the best possible outcome for shareholders. The law firm is known for representing investors affected by securities fraud and corporate misconduct.
The investigation by Halper Sadeh LLC is particularly relevant given recent insider activity. On December 26, 2024, Richieri Richard A., CDMO's Chief Operations Officer, sold 3,843 shares at $12.22 each. This transaction price is slightly below the current stock price of $12.35, which has seen a 0.86% increase. Such insider transactions can influence perceptions of the company's valuation.
CDMO's stock has shown volatility, with a 52-week high of $12.48 and a low of $5.65. The current market capitalization stands at approximately $789.6 million. The stock's fluctuation between $12.29 and $12.35 today highlights the market's response to the ongoing investigation and proposed sale. Investors are closely watching these developments.
The trading volume for CDMO today is 882,025 shares, indicating active investor interest. This activity may be driven by the potential for increased compensation or additional disclosures as sought by Halper Sadeh LLC. The firm's history of recovering millions for defrauded investors adds weight to the investigation's potential impact on CDMO's future.
Avid Bioservices, Inc. (NASDAQ:CDMO) Achieves Record Financial Milestones
- Record-breaking fourth-quarter revenue of $43 million for the fiscal year ending April 30, 2024, highlights Avid Bioservices' strong market position and operational efficiency.
- The company has signed $30 million in net new business, contributing to a backlog of $193 million, demonstrating its ability to attract and retain clients.
- A price target of $8 set by RBC Capital analyst Sean Dodge reflects confidence in Avid Bioservices' growth trajectory within the biologics CDMO sector.
Avid Bioservices, Inc. (NASDAQ:CDMO) has been making significant strides in the biopharmaceutical sector as a contract development and manufacturing organization. Since its rebranding from Peregrine Pharmaceuticals, Inc. in January 2018, CDMO has focused on producing biopharmaceutical drug substances, leveraging mammalian cell culture technology. This specialization places Avid Bioservices in a unique position within the biotechnology and biopharmaceutical industries, catering to a growing demand for contract development and manufacturing services. The company's comprehensive service offerings, including CGMP clinical and commercial manufacturing, process development, and regulatory support, underscore its commitment to supporting the lifecycle of biopharmaceutical products.
The recent financial milestones achieved by Avid Bioservices highlight the company's robust performance and potential for future growth. For instance, the record-breaking fourth-quarter revenue of $43 million for the fiscal year ending April 30, 2024, as reported by GlobeNewswire, marks the highest in the company's history. This achievement, coupled with the signing of $30 million in net new business, contributing to a backlog of $193 million, demonstrates Avid Bioservices' strong market position and operational efficiency. These financial results are a testament to the company's ability to attract and retain clients, thereby ensuring a steady stream of revenue.
Furthermore, the setting of a price target of $8 by RBC Capital analyst Sean Dodge reflects confidence in Avid Bioservices' growth trajectory and strategic positioning within the biologics CDMO sector. This price target, informed by the company's recent financial achievements and market dynamics, suggests a positive outlook on CDMO's stock potential. The analyst's perspective is likely influenced by Avid Bioservices' record revenue figures, backlog growth, and the broader industry trends favoring biologics production outsourcing.
The biopharmaceutical sector's volatility, driven by regulatory approvals, clinical trial outcomes, and partnership announcements, plays a significant role in shaping analyst target prices and market perceptions. Avid Bioservices' ability to navigate this complex landscape, as evidenced by its financial results and strategic initiatives, positions the company favorably among investors and analysts alike.
In conclusion, Avid Bioservices' financial performance and the strategic moves it has made underscore the company's resilience and adaptability in a competitive and rapidly evolving industry. The record revenues and backlog, along with the positive price target from RBC Capital, signal strong confidence in CDMO's growth potential and market position. As the biopharmaceutical industry continues to evolve, Avid Bioservices' role as a key player in contract development and manufacturing is expected to remain critical, offering promising opportunities for the company and its stakeholders.
Avid Bioservices, Inc. (NASDAQ:CDMO) Achieves Record Financial Milestones
- Record-breaking fourth-quarter revenue of $43 million for the fiscal year ending April 30, 2024, highlights Avid Bioservices' strong market position and operational efficiency.
- The company has signed $30 million in net new business, contributing to a backlog of $193 million, demonstrating its ability to attract and retain clients.
- A price target of $8 set by RBC Capital analyst Sean Dodge reflects confidence in Avid Bioservices' growth trajectory within the biologics CDMO sector.
Avid Bioservices, Inc. (NASDAQ:CDMO) has been making significant strides in the biopharmaceutical sector as a contract development and manufacturing organization. Since its rebranding from Peregrine Pharmaceuticals, Inc. in January 2018, CDMO has focused on producing biopharmaceutical drug substances, leveraging mammalian cell culture technology. This specialization places Avid Bioservices in a unique position within the biotechnology and biopharmaceutical industries, catering to a growing demand for contract development and manufacturing services. The company's comprehensive service offerings, including CGMP clinical and commercial manufacturing, process development, and regulatory support, underscore its commitment to supporting the lifecycle of biopharmaceutical products.
The recent financial milestones achieved by Avid Bioservices highlight the company's robust performance and potential for future growth. For instance, the record-breaking fourth-quarter revenue of $43 million for the fiscal year ending April 30, 2024, as reported by GlobeNewswire, marks the highest in the company's history. This achievement, coupled with the signing of $30 million in net new business, contributing to a backlog of $193 million, demonstrates Avid Bioservices' strong market position and operational efficiency. These financial results are a testament to the company's ability to attract and retain clients, thereby ensuring a steady stream of revenue.
Furthermore, the setting of a price target of $8 by RBC Capital analyst Sean Dodge reflects confidence in Avid Bioservices' growth trajectory and strategic positioning within the biologics CDMO sector. This price target, informed by the company's recent financial achievements and market dynamics, suggests a positive outlook on CDMO's stock potential. The analyst's perspective is likely influenced by Avid Bioservices' record revenue figures, backlog growth, and the broader industry trends favoring biologics production outsourcing.
The biopharmaceutical sector's volatility, driven by regulatory approvals, clinical trial outcomes, and partnership announcements, plays a significant role in shaping analyst target prices and market perceptions. Avid Bioservices' ability to navigate this complex landscape, as evidenced by its financial results and strategic initiatives, positions the company favorably among investors and analysts alike.
In conclusion, Avid Bioservices' financial performance and the strategic moves it has made underscore the company's resilience and adaptability in a competitive and rapidly evolving industry. The record revenues and backlog, along with the positive price target from RBC Capital, signal strong confidence in CDMO's growth potential and market position. As the biopharmaceutical industry continues to evolve, Avid Bioservices' role as a key player in contract development and manufacturing is expected to remain critical, offering promising opportunities for the company and its stakeholders.
Avid Bioservices, Inc. Reports Mixed Financial Results for Q4 Fiscal Year 2024
- Avid Bioservices reported an EPS of -1.94, significantly below the anticipated -0.038, indicating a larger-than-expected loss.
- The company's revenue for the fourth quarter was $42.98 million, slightly exceeding forecasts and marking a record-breaking figure for the period.
- Despite the disappointing EPS, Avid Bioservices has set ambitious revenue guidance for fiscal year 2025, projecting earnings between $160 million and $168 million.
On Wednesday, July 3, 2024, Avid Bioservices, Inc. (NASDAQ:CDMO) reported its earnings per share (EPS) for the fourth quarter of the fiscal year 2024, revealing a figure of -1.94. This result was significantly below the anticipated -0.038, indicating a larger-than-expected loss for the period. However, the company's revenue for the same period was $42.98 million, which slightly exceeded the forecast of $42.14 million. This mixed financial outcome highlights the challenges and opportunities facing the company in terms of its operational and financial performance.
Avid Bioservices, a key player in the biotechnology and pharmaceutical sectors, specializes in development and manufacturing services. Under the guidance of its leadership team, including President & CEO Nick Green, the company has recently completed a significant expansion program. This initiative has led to the full operational status of new facilities dedicated to mammalian, cell, and gene therapy, setting the stage for future growth. The company's successful execution of this expansion is a testament to its strategic planning and operational capabilities.
Despite the disappointing EPS, Avid Bioservices achieved a record-breaking fourth-quarter revenue of $43 million, the highest in its history. This achievement is particularly noteworthy as it comes at a time when the company has signed $30 million in net new business, contributing to a robust backlog of $193 million. Such financial milestones underscore the company's ability to attract and retain business, even in a challenging economic environment.
Looking forward, Avid Bioservices has set ambitious revenue guidance for the fiscal year 2025, projecting earnings between $160 million and $168 million. This forecast reflects the company's confidence in its enhanced operational capabilities and its commitment to making a positive impact on patient lives through its services. The company's strategic investments in expanding its facilities and its focus on high-quality development and manufacturing services are expected to drive its growth in the coming years.
Financial metrics such as the price-to-sales ratio (TTM) of approximately 3.49 and the enterprise value-to-sales ratio (TTM) of about 4.70 provide further insight into how investors value Avid Bioservices. Despite a negative price-to-earnings ratio (TTM) of -3.47, indicating current unprofitability, the company maintains a stable financial position with a current ratio (TTM) of 1.47. This balance between assets and liabilities, along with the company's strategic initiatives and operational achievements, positions Avid Bioservices for potential future success in the biotechnology and pharmaceutical sectors.
Avid Bioservices, Inc. Reports Mixed Financial Results for Q4 Fiscal Year 2024
- Avid Bioservices reported an EPS of -1.94, significantly below the anticipated -0.038, indicating a larger-than-expected loss.
- The company's revenue for the fourth quarter was $42.98 million, slightly exceeding forecasts and marking a record-breaking figure for the period.
- Despite the disappointing EPS, Avid Bioservices has set ambitious revenue guidance for fiscal year 2025, projecting earnings between $160 million and $168 million.
On Wednesday, July 3, 2024, Avid Bioservices, Inc. (NASDAQ:CDMO) reported its earnings per share (EPS) for the fourth quarter of the fiscal year 2024, revealing a figure of -1.94. This result was significantly below the anticipated -0.038, indicating a larger-than-expected loss for the period. However, the company's revenue for the same period was $42.98 million, which slightly exceeded the forecast of $42.14 million. This mixed financial outcome highlights the challenges and opportunities facing the company in terms of its operational and financial performance.
Avid Bioservices, a key player in the biotechnology and pharmaceutical sectors, specializes in development and manufacturing services. Under the guidance of its leadership team, including President & CEO Nick Green, the company has recently completed a significant expansion program. This initiative has led to the full operational status of new facilities dedicated to mammalian, cell, and gene therapy, setting the stage for future growth. The company's successful execution of this expansion is a testament to its strategic planning and operational capabilities.
Despite the disappointing EPS, Avid Bioservices achieved a record-breaking fourth-quarter revenue of $43 million, the highest in its history. This achievement is particularly noteworthy as it comes at a time when the company has signed $30 million in net new business, contributing to a robust backlog of $193 million. Such financial milestones underscore the company's ability to attract and retain business, even in a challenging economic environment.
Looking forward, Avid Bioservices has set ambitious revenue guidance for the fiscal year 2025, projecting earnings between $160 million and $168 million. This forecast reflects the company's confidence in its enhanced operational capabilities and its commitment to making a positive impact on patient lives through its services. The company's strategic investments in expanding its facilities and its focus on high-quality development and manufacturing services are expected to drive its growth in the coming years.
Financial metrics such as the price-to-sales ratio (TTM) of approximately 3.49 and the enterprise value-to-sales ratio (TTM) of about 4.70 provide further insight into how investors value Avid Bioservices. Despite a negative price-to-earnings ratio (TTM) of -3.47, indicating current unprofitability, the company maintains a stable financial position with a current ratio (TTM) of 1.47. This balance between assets and liabilities, along with the company's strategic initiatives and operational achievements, positions Avid Bioservices for potential future success in the biotechnology and pharmaceutical sectors.
Avid Bioservices Reports Q2 EPS Miss, While Revenues Beat Estimates
Avid Bioservices (NASDAQ:CDMO) reported its Q2 results, with EPS coming in at $0.02, worse than the Street estimate of $0.04. Revenue was $36.7 million, compared to the Street estimate of $33.44 million.
Q2 was another strong quarter of bookings ($41 million, up 78% year-over-year) that helped contribute to the fourth consecutive increase in the company's backlog, which now stands at $157 million.
The company still expects the majority of this to convert to revenue within 12 months; notably, this is ahead of the 2023 revenue guidance of $140-145 million (vs. Street’s $143 million).
