Schrodinger shares plunge as revenue outlook dims

Schrodinger

03/08/2023 16:17

** Shares in Schrodinger Inc  SDGR.O  were down 21.1% on
Thursday, on pace for biggest one-day pct drop since March 4,
2021, after reports Q2 rev below expectatations and cuts revenue
outlook 
    ** SDGR, a provider of software enables discovery of
molecules for drug development, materials applications, reported
adj. EPS of $0.06 vs  consensus expectation for loss of
$0.47/shr on rev of $35.2 mln which fell short of analyst
expectations for $37.87 mln, according to Refinitiv
    ** For Q3 SDGR sees revenue falling to $27mln-31mln range
    ** For FY 2023 sees software rev growth in 15-18% range, cut
drug discovery rev view to $50mln-$70mln range from prior
expectation of $70mln-$90mln, reflecting new expectations for
timing of collaboration milestones, completion of new business
development activity
    ** Sees software gross margin similar to that of FY 2022,
2023 oper expense growth expected to be significantly lower than
2022 growth, cash used for operating activities in 2023 seen
below cash used for operating activities in 2022 
    ** Stock last traded at $39.65 median PT of $60 as per
Refinitiv which shows 9 analysts covering SDGR with 2 'strong
sell' ratings, 4 'sell' ratings and 3 'hold' ratings
    ** After the report, BMO cut its PT to $67 from $78 while
Berenberg cut its PT to $80 from $86
     

 (Reporting By Sinéad Carew)
 ((sinead.carew@thomsonreuters.com; +13322191897;))