Why Shares of Avid Bioservices Are Dropping Thursday
Shares of Avid Bioservices (NASDAQ: CDMO) were down more than 12% Thursday afternoon after falling as much as 17% earlier in the day. The drop came after the biologics contract development and manufacturing organization (CDMO) released fourth-quarter and full-year fiscal 2023 earnings. Avid's stock is down more than 2% so far this year.
The healthcare company's shares fell when its earnings per share (EPS) dropped for both the fourth quarter and the year. It reported fourth-quarter EPS of $0.00, down from $1.65 in the fourth quarter of fiscal 2022. Full-year EPS was $0.01, compared to EPS of $1.84 for 2022. The reasons given for the lowered EPS were increased expenses for compensation and benefits, legal, accounting, and other professional services.
There were some positive notes in the report. The company cited increased manufacturing runs and process development services for boosting revenue. Fourth-quarter revenue was $39.8 million, up 28% year over year, while yearly revenue was up 25% to $149.3 million.
Source Fool.com
