Codexis Earnings: Here’s Why the Stock is Falling Now

Codexis, Inc. (NASDAQ:CDXS) had a loss and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.91%.

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Codexis, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.25 in the quarter versus EPS of $-0.21 in the year-earlier quarter.

Revenue: Decreased 63.13% to $11.48 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Codexis, Inc. reported adjusted EPS loss of $0.25 per share. By that measure, the company beat the mean analyst estimate of $-0.35. It beat the average revenue estimate of $7.63 million.

Quoting Management: “We are very encouraged by the continued growth of our pharmaceutical business during the first quarter, which demonstrated strong sales and profit expansion,” said John Nicols, President and CEO of Codexis. “These improvements were driven in particular by long-term partnerships coming to commercial fruition, most notably significant sales of enzymes to Merck and stepped up collaborative revenue for argatroban injection through our partnership with Exela Pharma Sciences, LLC. We also continue to expand our pharmaceutical business through new partnerships, which we expect to increase our development pipeline into the future.”

Key Stats (on next page)…

Revenue increased 45.13% from $7.91 million in the previous quarter. EPS decreased to $-0.25 in the quarter versus EPS of $-0.41 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.19 to a loss $0.31. For the current year, the average estimate has moved down from a loss of $0.7 to a loss of $1.09 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)