Why Inotiv Shares Are Shooting Higher Today

Inotiv Inc NOTV shares are trading higher Wednesday after the company reported better-than-expected earnings results.

What Happened: Inotiv reported fourth-quarter revenue of $150.45 million, which missed average analyst estimates of $152.96 million. The research company said its top-line results were driven by favorable pricing and increased customer demand.

Inotiv reported a quarterly adjusted net loss of 32 cents per share, which beat estimates for a loss of 37 cents per share. 

"Organic revenue growth in 2022 was $141.0 million representing incremental revenue growth of approximately 31% ... Although we are facing headwinds related to NHP disruption, we have entered fiscal year 2023 with a much stronger organization, and a clear vision of what we need to focus on to improve earnings, cash flow and overall operations," said Robert Leasure Jr., president and CEO of Inotiv.

Inotiv said it expects full-year 2023 revenue of at least $580 million. The company anticipates full-year adjusted EBITDA of at least $75 million.

Following the company's quarterly results, Lake Street analyst Frank Takkinen upgraded Inotiv from Hold to Buy and raised the price target from $4 to $10.

Related Link: Benzinga's Top Ratings Upgrades, Downgrades For January 11, 2023

Inotiv is a contract research organization specializing in nonclinical and analytical drug discovery and development services.

NOTV Price Action: Inotiv has a 52-week high of $42.63 and a 52-week low of $3.65.

The stock was up 25.3% at $7 at time of publication, according to Benzinga Pro.

Photo: Lorenzo Cafaro from Pixabay.

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