Shares of Avid Bioservices dropped 19% to $4.30 in pre-market trading following the biotechnology company’s announcement of a significant revenue miss and a downward revision of its guidance for the year.
Revenue Decline and Factors
For its fiscal second quarter ended Oct. 31, Avid Bioservices reported a decrease in revenue to $25.4 million, compared to $34.8 million for the same period last year. This decline can be attributed to fewer year-to-date manufacturing runs and a decrease in in-process development services from early-stage customers.
The company also disclosed a quarterly loss of $9.5 million, or 15 cents per share, compared to a loss of $1.2 million, or 2 cents per share, in the year-ago period. Analysts had predicted a loss of 6 cents per share.
Avid now anticipates revenue for the year to be between $137 million and $147 million, which is lower than its previous guidance of $145 million to $165 million.
It is evident that Avid Bioservices is encountering challenges regarding its financial performance. The company’s revenue dip and lowered guidance highlight the need for strategic measures to address these concerns and ensure future growth.