TICKERS: NOTV
CRO's Shares Rise 18% on Preliminary Q4/FY Financial Results
Market Gainer
Source: Streetwise Reports��(12/8/21)
Shares of contract research organization Inotiv Inc. traded higher after the company reported select preliminary unaudited financial results for Q4/21 and FY/21 which included a 90.7% YoY increase in revenue and a 123.0% increase in gross profit.
After U.S. markets closed for trading yesterday, contract research
organization (CRO) Inotiv Inc. (NOTV:NASDAQ), which provides nonclinical and analytical drug discovery, development and research services, announced "select preliminary unaudited financial results for Q4/21 an FY/21 ended September 30, 2021."
The company stated for Q4/21, it expects total revenue of $30.1 million, which represents a 90.7% increase compared to the $15.8 million that it posted during Q4/20. The firm listed that it estimates that gross profit in Q4/21 is expected to increase by 123.0% to $10.3 million, versus $4.6 million in Q4/20.
Inotiv stated that its book-to-bill ratio for its services business was 1.77x in Q4/21 and 1.52x for FY/21.
For FY/21, the company stated that total revenue is expected to increase by 48.2% to $89.6 million, compared to $60.5 million FY/20. Inotiv anticipates that FY/21gross profit will come in at $30.2 million, which is 65.4% higher than the $18.2 million recorded during FY/20.
The company advised that it is enjoying a healthy growth in its backlog. The firm listed that as of September 30, 2021, it had a backlog of $81.4 million, which is up 31.3% compared to $62.0 million at the end of Q3/21 and is 85.8% higher than the $43.8 million of backlog registered at the end of Q4/20.
The company's President and CEO Robert Leasure Jr. stated, "We capped off a transformational year for Inotiv with strong preliminary revenue, gross profit, book-to-bill and backlog figures for the fourth quarter of fiscal 2021, reflecting our success expanding existing operations and services, starting up new services, and acquiring strategic assets."
CEO Leasure added, "We look forward to sharing more details upon the issuance of our full financial results in the coming days."
The company reported that it had originally planned to host a conference call on December 7, 2021 to discuss Q4/21 and FY/21 financial results with investors. The firm mentioned that it is still in the process of filing documents related to the valuation of non-cash items related to the embedded derivative on the firm's convertible notes and the non-cash tax impact of acquisitions by the company in Q3/21 and Q4/21. The company stated that it remains on track with the timely filing of its Annual Report on Form 10-K for the FYE September 30, 2021. Inotiv advised that it plans to issue a news release outlining final Q4/21 results along with the date and time for a rescheduled conference call.
Inotiv is a contract research organization (CRO) based in West Lafayette, Ind. As a CRO, the company offers both nonclinical and analytical drug discovery and development services. In addition, the firm provides research models and related products and services. The company explained that "it's products and services focus on bringing new drugs and medical devices through the discovery and preclinical phases of development, all while increasing efficiency, improving data, and reducing the cost of taking new drugs to market." Inotiv works to helps its clients meet their own discovery and development objectives and to realize the full potential of their critical R&D projects and bring new medicines to the market.
Inotiv began the day with a market cap of around $728.6 million with approximately 16.0 million shares outstanding. NOTV shares opened about 2% higher today at $46.40 (+$0.83, +1.82%) over yesterday's $45.57 closing price and then proceeded higher throughout the day. The stock has traded today between $45.21 and $58.88 per share and is currently trading at $53.735 (+$8.165, +17.92%).
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
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