Stock Alert: Avid Bioservices Falls 29% On Earnings, Outlook

(RTTNews) - Shares of Avid Bioservices Inc. (CDMO) are currently losing almost 29 percent in the morning trade on Wednesday at $4.26 after the company reported a wider net loss for the third quarter and also lowered its fiscal 2020 revenue outlook.

The stock has traded in a range of $3.37 to $8.38 in the past 52 weeks.

Avid Bioservices is a contract development and manufacturing organization, providing commercial manufacturing services focused on biopharmaceutical products.

For the third quarter, Avid Bioservices reported a consolidated net loss attributable to common stockholders of $3.55 million or $0.06 per share, wider than net loss of $2.58 million or $0.05 per share in the year-ago period. Revenue for the quarter edged down to $13.59 million from $13.78 million for the third quarter of last fiscal year. The company attributed the lower revenue and wider loss to temporary production interruptions and said it expects this to impact revenues and profits for the fourth quarter as well.

Accordingly, the company lowered its revenue outlook for fiscal 2020 to a range of $55 million to $59 million from the prior range of $64 million to $67 million.