Avid Bioservices drops after Q2 adj. EBITDA misses estimates

Avid Bioservices

07/12/2022 18:04

** Shares of contract development and manufacturing
organization Avid Bioservices Inc  CDMO.O  fall ~14% to $12.81 
    ** Stock set for its biggest daily pct decline since Aug.
last year if losses hold  
    ** Late on Tuesday, co reported Q2 adj. EBITDA of $1.9 mln;
compared with estimates of $4.9 mln - Refinitiv data 
    ** RBC Capital Markets says in a note that Avid's adj.
EBITDA was temporarily impacted by growth-related investments;
cuts PT on stock to $20 from $22 
    ** Avid also reported signing $26 mln in net new orders
during Q2, lower than RBC's estimate of $43 mln  
    ** However, Avid raises revenue forecast for fiscal year 
2023 from a range of $140 mln-$145 mln to $145 mln-$150 mln
    ** Including session moves, stock down ~56% YTD
 (Reporting by Raghav Mahobe)
 ((Raghav.Mahobe@thomsonreuters.com;))