Avid Bioservices Intrinsic Value Calculation – AVID BIOSERVICES Reports Third Quarter Earnings Results for FY2023
March 20, 2023
Earnings Overview
For the third quarter of FY2023 ending on January 31, 2023, AVID BIOSERVICES ($BER:TEHP) reported total revenue of USD 0.5 million, a decrease of 79.6% compared to the same quarter of the prior year. Despite that, net income rose 20.7% to USD 38.0 million.
Price History
Monday was a challenging day for AVID BIOSERVICES as its stock opened at €13.2 and closed at €13.2, a decrease of 4.9% from the last closing price of €13.9. This has led to the company’s third quarter earnings results for the fiscal year 2023, which were recently announced. Operating income also dropped, from €5 million in the second quarter to €2 million in the third quarter.
Overall, the company’s results for the third quarter of FY2023 show that while revenue was up, operating and net margins were down significantly due to higher expenses. AVID BIOSERVICES is now looking to introduce cost-cutting measures in order to improve its bottom line and will continue to focus on improving its operations in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Avid Bioservices. More…
| Total Revenues | Net Income | Net Margin |
| 140.69 | 116.47 | 82.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Avid Bioservices. More…
| Operations | Investing | Financing |
| -15.07 | -77.33 | 2.36 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Avid Bioservices. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 450.43 | 265.04 | 2.97 |
Key Ratios Snapshot
Some of the financial key ratios for Avid Bioservices are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 29.9% | – | 3.2% |
| FCF Margin | ROE | ROA |
| -65.7% | 1.5% | 0.6% |
Analysis – Avid Bioservices Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis of AVID BIOSERVICES‘s financials. Our proprietary Valuation Line indicates that the intrinsic value of AVID BIOSERVICES share is around €19.8. This means that the stock is currently being traded at €13.2, which is undervalued by 33.2%. This presents a great opportunity for investors to buy the stock at a discount price and benefit from strong potential upside. More…
Summary
AVID BIOSERVICES, Inc. reported its financial results for the three months ended January 31, 2023. Total revenue declined 79.6% year-on-year, while net income rose 20.7% to USD 38.0 million. The stock price reacted negatively to the news, dropping on the same day.
Investors should take into consideration that revenue was significantly lower as compared to the prior year, as well as the fact that there is still a long way to go before AVID BIOSERVICES can return to profitability. Furthermore, it is important to consider the overall economic conditions and industry trends in the sector when making an investment decision.
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