Here's Why Avid Bioservices Tumbled Today

Shares of Avid Bioservices (NASDAQ: CDMO) fell as much as 34.4% today after the company reported fiscal third-quarter 2020 operating results. The contract development and manufacturing organization (CDMO) encountered problems with a specific piece of equipment, which forced it to discard in-process manufacturing runs and delay parts of its manufacturing schedule. As a result, the business had to significantly reduce fiscal full-year 2020 revenue guidance.

Previously, the company had been expecting annual revenue of $64 million to $67 million. It now expects only $55 million to $59 million in revenue during the current fiscal year, which ends on the last day of April.

As of 1:54 p.m. EDT, the small-cap stock had settled to a 31.4% loss.

Source Fool.com