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The company’s surprise history has been excellent so far, with its earnings beating estimates in each of the trailing three quarters, the average being 316.67%. In the last-reported quarter, Avid Bioservices delivered an earnings beat of 400.00%.
Shares of Avid Bioservices have rallied 7.3% in the past year against the industry’s decrease of 39.6%.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for the quarter to be reported.
Factors at Play
Avid Bioservices’ CDMO business offers a range of services from process development to Current Good Manufacturing Practices clinical and commercial manufacturing for the pharmaceutical industry.
The company’s top line usually comprises of process development revenues related to services provided to new customers, besides fees received from existing ones. Higher process development revenues, primarily associated with services provided to new customers and the increase in fees received from customers for unutilized reserved capacity, are likely to have driven the top line in the third quarter.
Investors will be keen to get an update on the company’s expansion of its Myford facility at the upcoming earnings call.
In January 2022, Avid Bioservices opened the new Myford South facility — a second downstream processing suite within the company’s existing Myford North facility. This is likely to boost the facility’s capacity and help it offer high-quality services, thus improving the company’s revenue-generating capability.
Operating expenses are likely to have increased in the third quarter on increased stock-based compensation as well as higher facility and related expenses.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Avid Bioservices this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, that is not the case here as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Avid Bioservices has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate currently stand at 5 cents per share.
Here are a few stocks you may want to consider as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:
Vir Biotechnology, Inc. (VIR - Free Report) has an Earnings ESP of +32.05% and a Zacks Rank #1 at present. The company will release earnings result on Feb 24, 2022.
Earnings of Vir Biotechnology have surpassed estimates in two of the trailing four quarters and missed the same on the other two occasions. VIR has a four-quarter earnings surprise of 12.95%, on average.
Kaleido Biosciences, Inc. has an Earnings ESP of +20.41% and a Zacks Rank #2 at present.
Earnings of Kaleido Biosciences have surpassed estimates in three of the trailing four quarters and missed the same on the other occasion. KLDO has a four-quarter negative earnings surprise of 5.08%, on average.
Apellis Pharmaceuticals, Inc. (APLS - Free Report) has an Earnings ESP of +16.07% and a Zacks Rank #3 at present.
Earnings of Apellis Pharmaceuticals have surpassed estimates in one of the trailing four quarters and missed the same on the three occasions. APLS has a four-quarter earnings surprise of 41.17%, on average.
Image: Bigstock
Avid (CDMO) to Report Q3 Earnings: What's in the Cards?
Avid Bioservices, Inc. (CDMO - Free Report) will provide updates on its contract development and manufacturing organization (“CDMO”) business when it reports earnings results for the third quarter of fiscal 2022.
The company’s surprise history has been excellent so far, with its earnings beating estimates in each of the trailing three quarters, the average being 316.67%. In the last-reported quarter, Avid Bioservices delivered an earnings beat of 400.00%.
Shares of Avid Bioservices have rallied 7.3% in the past year against the industry’s decrease of 39.6%.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for the quarter to be reported.
Factors at Play
Avid Bioservices’ CDMO business offers a range of services from process development to Current Good Manufacturing Practices clinical and commercial manufacturing for the pharmaceutical industry.
The company’s top line usually comprises of process development revenues related to services provided to new customers, besides fees received from existing ones. Higher process development revenues, primarily associated with services provided to new customers and the increase in fees received from customers for unutilized reserved capacity, are likely to have driven the top line in the third quarter.
Investors will be keen to get an update on the company’s expansion of its Myford facility at the upcoming earnings call.
In January 2022, Avid Bioservices opened the new Myford South facility — a second downstream processing suite within the company’s existing Myford North facility. This is likely to boost the facility’s capacity and help it offer high-quality services, thus improving the company’s revenue-generating capability.
Operating expenses are likely to have increased in the third quarter on increased stock-based compensation as well as higher facility and related expenses.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Avid Bioservices this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, that is not the case here as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Avid Bioservices has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate currently stand at 5 cents per share.
Zacks Rank: Avid Bioservices currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Avid Bioservices, Inc. Price and EPS Surprise
Avid Bioservices, Inc. price-eps-surprise | Avid Bioservices, Inc. Quote
Stocks to Consider
Here are a few stocks you may want to consider as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:
Vir Biotechnology, Inc. (VIR - Free Report) has an Earnings ESP of +32.05% and a Zacks Rank #1 at present. The company will release earnings result on Feb 24, 2022.
Earnings of Vir Biotechnology have surpassed estimates in two of the trailing four quarters and missed the same on the other two occasions. VIR has a four-quarter earnings surprise of 12.95%, on average.
Kaleido Biosciences, Inc. has an Earnings ESP of +20.41% and a Zacks Rank #2 at present.
Earnings of Kaleido Biosciences have surpassed estimates in three of the trailing four quarters and missed the same on the other occasion. KLDO has a four-quarter negative earnings surprise of 5.08%, on average.
Apellis Pharmaceuticals, Inc. (APLS - Free Report) has an Earnings ESP of +16.07% and a Zacks Rank #3 at present.
Earnings of Apellis Pharmaceuticals have surpassed estimates in one of the trailing four quarters and missed the same on the three occasions. APLS has a four-quarter earnings surprise of 41.17%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.