27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
Wednesday afternoon Avid Bioservices Inc (NASDAQ:CDMO) reported Q4 revenue of $39.8 million, a 28% Y/Y, beating the consensus of $38.90 million.
The gross margin was 21%, consistent with the same period in the prior year.
Avid recorded a net loss of approximately $0.3 million for the fourth quarter of fiscal 2023, compared to a net income of $115.6 million in the same period of the previous year.
As of April 30, 2023, cash and cash equivalents were $38.5 million.
Guidance: Avid forecasts FY24 sales of $145 million-$165 million. Investors are reacting as the outlook is way below the consensus of $181.27 million.
Stephens reiterated its Overweight rating but lowered its price target to $20 from $24.
The analyst notes that the company called out recent later-stage (phase 3/PPQ) work, representing larger projects that take longer to convert into revenue.
In FY2024, an air pocket is created by the combination of this factor and a decline in early-stage demand. As a result, our FY24/FY25 estimates are moving lower.
Longer term, if these later-stage customers move to commercial, the analyst could argue this is a net positive.
Noting the challenging near term, the analyst continues to take the long view, which could prove to be a compelling entry point.
Price Action: CDMO shares are down 13.2% at $13.51 on the last check Thursday.
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
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