Today’s Hot Stock Under Review: Codexis Inc. (NASDAQ: CDXS)

Dorothy Owen

I am Dorothy Owen and I give “Seeking Review” an insight into the most recent news hitting the “Healthcare” sector in Wall Street.

I have been an independent financial adviser for over 11 years in the city and in recent years turned my experience in finance and passion for journalism into a full time role. I perform analysis of Companies and publicize valuable information for shareholder community.

Address: 454 Cottrill Lane, Saint Louis, MO 63108, USA
Phone: (+1) 314-388-9712
Email: dorothy.owen@seekingreview.com
Dorothy Owen

REDWOOD CITY, Calif., August 12, 2019 – Shares of Codexis Inc. (NASDAQ: CDXS) gained 0.07% to $14.17. The stock grabbed the investor’s attention and traded 431.129K shares as compared to its average daily volume of 386.40K shares. The stock’s institutional ownership stands at 93.10%.

Codexis Inc. (CDXS) reported a loss of $5.10M in its first quarter. The Redwood City, California-based company said it had a loss of 9 cents per share. Losses, adjusted for stock option expense and non-recurring costs, came to 5 cents per share.

First Quarter Financial Highlights:

Total revenues for the first quarter of 2019 were $15.60M, up 11% from $14.00M for the first quarter of 2018, with the increase mainly because of higher product revenue. Product revenue was $8.00M, up 30% from $6.20M for the first quarter of 2018, with the increase reflecting customer demand for enzymes for both generic and branded products. Research and development (R&D) revenue for the first quarter of 2019 was $7.60M, contrast with $7.90M for the prior-year period. R&D revenue for the first quarter of 2019 included $2.10M from the Performance Enzymes segment and $5.50M from the Novel Biotherapeutics segment. R&D revenue for the first quarter of 2018 included $4.60M from the Performance Enzymes segment and $3.30M from the Novel Biotherapeutics segment.

R&D expenses were $8.00M for the first quarter of 2019, contrast with $7.20M for the first quarter of 2018, with the increase mainly because of higher expenses related to headcount, allocation of occupancy-related costs and increases in lab supplies and stock-based compensation, partially offset by lower outside services. R&D expenses for the first quarter of 2019 included $4.40M from the Performance Enzymes segment and $3.30M from the Novel Biotherapeutics segment. R&D expenses for the first quarter of 2018 included $5.10M from the Performance Enzymes segment and $1.90M from the Novel Biotherapeutics segment.

Selling, general and administrative (SG&A) expenses for the first quarter of 2019 were $8.40M, contrast with $7.70M for the first quarter of 2018, with the increase mainly because of higher costs associated with facilities and headcount, higher consultant fees and stock-based compensation, partially offset by decreases in allocable expenses, lower outside services and accounting fees. SG&A expenses for the first quarter of 2019 included $2.10M from the Performance Enzymes segment, $0.50M from the Novel Biotherapeutics segment and the remaining portion is included in $5.90M in corporate overhead and depreciation expense. SG&A expenses for the first quarter of 2018 included $2.10M from the Performance Enzymes segment, $0.10M from Novel Biotherapeutics and the remaining portion is included in $5.70M in corporate overhead and depreciation expense.

The net loss for the first quarter of 2019 was $5.10M, or $0.09 per share, contrast with a net loss for the first quarter of 2018 of $4.70M, or $0.10 per share. Non-GAAP net loss for the first quarter of 2019 was $2.80M, or $0.05 per share, contrast with a non-GAAP net loss for the first quarter of 2018 of $2.50M, or $0.05 per share.

Cash and cash equivalents as of March 31, 2019 were $47.30M, contrast with $53.00M as of December 31, 2018.

2019 Financial Outlook:

Codexis is affirming its financial guidance for 2019, as follows:

  • Total revenues are expected to be $69.0M to $72.0M;
  • Product revenues are expected to be $26.0M to $29.0M; and Gross margin on product revenues is expected to be 48% to 52%.

CDXS has a market value of $799.33M while its EPS was booked as $-0.21 in the last 12 months. The stock has 56.41M shares outstanding. In the profitability analysis, the company has gross profit margin of 78.80% while net profit margin was -18.20%. Beta value of the company was -0.11; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 1.80.

Dorothy Owen

Dorothy Owen

I am Dorothy Owen and I give “Seeking Review” an insight into the most recent news hitting the “Healthcare” sector in Wall Street. I have been an independent financial adviser for over 11 years in the city and in recent years turned my experience in finance and passion for journalism into a full time role. I perform analysis of Companies and publicize valuable information for shareholder community. Address: 454 Cottrill Lane, Saint Louis, MO 63108, USA Phone: (+1) 314-388-9712 Email: dorothy.owen@seekingreview.com