Avid Bioservices, Inc. CDMO will provide updates on its contract development and manufacturing organization (“CDMO”) business when it releases its results for the third quarter of fiscal 2022.
The company’s surprise story has been great so far, with earnings beating estimates in each of the last three quarters, averaging 316.67%. In the last reported quarter, Avid Bioservices recorded a profit increase of 400.00%.
Shares of Avid Bioservices are up 7.3% over the past year versus a 39.6% decline for the sector.
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Let’s see how things look for the quarter to report.
Factors at play
Avid Bioservices’ CDMO business offers a range of services from process development to clinical and commercial manufacturing under current good manufacturing practices for the pharmaceutical industry.
Company revenue typically includes process development revenue related to services provided to new customers, in addition to fees received from existing customers. Higher process development revenue, primarily associated with services provided to new customers and higher fees received from customers for unused reserved capacity, is expected to have boosted revenue in the third quarter.
Investors will be keen to get an update on the company’s expansion of its Myford plant during the upcoming earnings call.
In January 2022, Avid Bioservices opened the new Myford South facility — a second downstream processing suite within the company’s existing Myford North facility. This is likely to increase the capacity of the facility and help it deliver high quality services, thereby improving the revenue generating capability of the business.
Operating expenses likely increased in the third quarter due to higher stock-based compensation as well as higher facilities and related expenses.
Our proven model does not conclusively predict increased profits for Avid Bioservices this time around. The combination of a positive Earnings ESP and a Zacks rank of #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of beating Earnings. Unfortunately, this is not the case here as you will see below. You can discover the best stocks to buy or sell before they’re flagged with our earnings ESP filter.
ESP Earnings: Avid Bioservices has an earnings ESP of 0.00% as the most accurate estimate and Zacks consensus estimate currently stands at 5 cents per share.
Zack’s Ranking: Avid Bioservices currently wears a Zacks rank #3. You can see the full list of today’s Zacks #1 Rank stocks here.
Avid Bioservices, Inc. Awards and EPS Surprise
Avid Bioservices, Inc. price-eps-surprise | Quote Avid Bioservices, Inc.
Actions to consider
Here are a few stocks you might want to consider as our model shows they have the right combination of elements to beat on earnings this reporting cycle:
Vir Biotechnology, Inc. VIR has an ESP of +32.05% and a Zacks rank #1 at the moment. The company will publish its results on February 24, 2022.
Vir Biotechnology’s earnings have exceeded estimates in two of the past four quarters and missed the same on the other two occasions. VIR has a four-quarter earnings surprise of 12.95% on average.
Kaleido Biosciences, Inc. KLDO has a +20.41% Earnings ESP and a #2 Zacks rank at present.
Kaleido Biosciences’ earnings beat estimates in three of the last four quarters and missed the same on the other occasion. KLDO has a four-quarter negative earnings surprise of 5.08% on average.
Apellis PharmaceuticalsInc. APLS has a +16.07% Earnings ESP and a #3 Zacks rank at present.
Apellis Pharmaceuticals’ earnings beat estimates in one of the past four quarters and missed the same three times. APLS has a four-quarter earnings surprise of 41.17%, on average.
Stay on top of upcoming earnings announcements with Zacks Earnings Calendar.
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Avid Bioservices, Inc. (CDMO): Free Inventory Analysis Report
Apellis Pharmaceuticals, Inc. (APLS): Free Stock Analysis Report
Kaleido Biosciences, Inc. (KLDO): Free Stock Analysis Report
Vir Biotechnology, Inc. (VIR): Free Stock Analysis Report
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