Avid Bioservices falls 14% on wider-than-expected quarterly loss
- Avid Bioservices (NASDAQ:CDMO) is trading 14% lower after it posted wider-than-expected Q2 loss, as costs rose.
- The company raised its full year revenue guidance to $145 and $150M from $140 to $145M vs $143.81M consensus.
- Revenue rose 33% to $34.8M, and beat by $2.74M. While, Q2 GAAP EPS of -$0.02 missed by $0.01.
- However, Revenue backlog was $147M, 23% Y/Y rise.
- Selling, general and administrative cost for the second quarter of fiscal 2023 were $6.8M, an increase of 36% Y/Y.
- Craig-Hallum analyst Matt Hewitt lowered the firm's price target on Avid Bioservices to $25 from $30 and keeps a Buy rating on the shares.
- The analyst noted that Avid provided a nice beat on revenues, increased their full year 2023 revenue guidance and commentary on the call was fairly upbeat.
- He believes the company can continue to outperform its peers as it has no COVID exposure, continues to benefit from capacity constraints in the markets it competes in.