Here's Why Avid Bioservices Jumped as Much as 22.2% Today
Shares of Avid Bioservices (NASDAQ: CDMO) rose over 22% today after the company reported fiscal second-quarter 2020 operating results. The company is a pure-play contract development and manufacturing organization (CDMO), which means it manufactures pharmaceutical drug compounds as a service. After shuffling operations in the past 24 months or so, it appears that the business is finally on a sustainable trajectory.
Avid Bioservices reported strong revenue growth, delivered much-improved gross margin, and reported an operating loss of only $529,000 during the most recent quarter. Important facility upgrades were made (with more on the way) and the backlog held a healthy $52 million in future work. All the progress gave management confidence to maintain fiscal full-year 2020 revenue guidance of $64 million to $67 million.
As of 12:41 p.m. EST, the pharma stock had settled to a 15.9% gain.
Source Fool.com
