INOTIV Reports Third Quarter Earnings Results for FY2023
August 12, 2023
🌥️Earnings Overview
On August 10, 2023, INOTIV ($NASDAQ:NOTV) reported its earnings results for the third quarter of FY2023, which ended on June 30, 2023. Revenues for the period totaled USD 157.5 million, a decrease of 8.8% year over year; however, net income increased 149.3%, reaching USD 1.8 million compared to the previous year.
Share Price
The company opened at $6.3 and closed at $6.4, which was a slight decrease of 0.2% from the prior closing price of $6.4. Looking forward, INOTIV is optimistic about their future prospects and is confident that their strategy of investing in new technologies and partnerships will continue to pay off in the coming quarters. They are also focusing on expanding their customer base and increasing their product portfolio in order to remain competitive in their industry. INOTIV’s management team believes that this will result in greater profitability for the company in the long run. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Inotiv. More…
| Total Revenues | Net Income | Net Margin |
| 582.15 | -339.63 | -9.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Inotiv. More…
| Operations | Investing | Financing |
| 9.29 | -36.65 | 30.17 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Inotiv. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 854.83 | 579.5 | 10.72 |
Key Ratios Snapshot
Some of the financial key ratios for Inotiv are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 113.9% | -64.2% | -56.6% |
| FCF Margin | ROE | ROA |
| -2.9% | -74.9% | -24.1% |
Analysis
At GoodWhale, we believe it is important to consider all aspects of a company before investing. Upon analyzing INOTIV‘s fundamentals, we found that the company had an intermediate health score of 4/10 considering its cashflows and debt. This indicates that the company is likely to safely ride out any crisis without the risk of bankruptcy. Additionally, INOTIV is strong in growth, medium in profitability and weak in asset, dividend. We classified the company as ‘cheetah’, a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. Investors looking to benefit from higher growth albeit with higher risk may be interested in INOTIV. More…
Peers
The competition in the pharmaceutical market is fierce.
– Icon PLC ($NASDAQ:ICLR)
Icon PLC, a clinical research organization, engages in the provision of outsourced development services to the pharmaceutical, biotechnology, and medical device industries worldwide. It operates through two segments, Development Solutions and Clinical Solutions. The company was founded in 1997 and is headquartered in Dublin, Ireland.
– RaQualia Pharma Inc ($TSE:4579)
Qualia Pharma Inc is a pharmaceutical company with a market cap of $23.32 billion as of 2022. The company has a return on equity of 14.16%. Qualia Pharma Inc is engaged in the research, development, manufacture, and sale of pharmaceutical products. The company’s products include prescription and over-the-counter drugs, vitamins, minerals, and supplements.
– Bioqual Inc ($OTCPK:BIOQ)
Bioqual Inc is a biotechnology company that develops and manufactures products for the biomedical research market. The company has a market cap of 5.24M as of 2022 and a return on equity of 265.57%. Bioqual Inc’s products are used in a variety of research applications, including cancer, infectious diseases, and gene therapy. The company’s products are distributed worldwide through a network of distributors and customers.
Summary
INOTIV reported its earnings results for the third quarter of FY2023, ending June 30, 2023. Total revenue dropped 8.8% year over year to USD 157.5 million. Net income saw a 149.3% increase year over year to USD 1.8 million. Investors should take into account any potential risk factors when considering investing in INOTIV, such as the decrease in total revenue and the increasing competition in the market.
However, the large increase in net income could indicate that INOTIV is making efforts to strengthen and expand its business operations. As always, investors should conduct thorough research of INOTIV’s financials and operations before making any investment decisions.
