Yahoo Finance Enzo Biochem (ENZ) Q3 Earnings Improve Y/Y, Gross Margin Up
Enzo Biochem, Inc. ENZ delivered a loss per share of 4 cents from continuing operations in the third quarter of fiscal 2024, narrower than the year-ago quarter’s loss of 16 cents per share.
Revenues in Detail
Enzo Biochem’s Life Sciences Products reporting unit operates in one reportable segment, Products.
The company’s Products revenues were $8 million in the fiscal third quarter, up 7.2% year over year. This was driven by robust revenues from the Europe and the Asia Pacific regions.
Geographic Details
Enzo Biochem’s operations consist of three geographic regions — the United States, Europe and Asia Pacific.
For the quarter under review, the United States reported revenues of $4.8 million, down 4.9% from the year-ago quarter.
Revenues in the Europe segment totaled $2.4 million, up 39.8% year over year. This was driven by an increase in the marketing effort in drug development product sales.
The Asia Pacific segment generated revenues of $0.9 million, up 15.4% from the year-ago quarter.
Enzo Biochem, Inc. Price, Consensus and EPS Surprise
Enzo Biochem, Inc. price-consensus-eps-surprise-chart | Enzo Biochem, Inc. Quote
Enzo Biochem Gross Margin
In the quarter under review, Enzo Biochem’s gross profit increased 24.1% to $3.7 million. The gross margin expanded 633 basis points (bps) to 46.5%.
Operating Expenses Analysis
Selling, general and administrative expenses decreased 27.9% to $4.5 million. Research and development expenses decreased 31.6% year over year to $0.6 million. Adjusted operating expenses of $5.1 million decreased 28.4% year over year.
Profitability
Adjusted operating loss totaled $1.4 million, narrower than the year-ago quarter’s adjusted operating loss of $4.1 million.
Enzo Biochem’s adjusted EBITDA in the reported quarter was a loss of $1.2 million compared with the year-ago quarter’s loss of $3.6 million.
In the fiscal third quarter, Enzo Biochem’s net loss from continuing operations was $2.1 million, narrower than the year-ago quarter’s net loss of $7.9 million.
Liquidity & Debt Management
Enzo Biochem exited third-quarter fiscal 2024 with cash and cash equivalents of $57.2 million compared with $60.2 million at the fiscal second-quarter end.
Total debt at the fiscal third-quarter end was $2.7 million compared with $2.8 million at the end of the fiscal second quarter.
Cumulative net cash used in operating activities at the end of third-quarter fiscal 2024 was $25.2 million compared with $19.9 million a year ago.
Our Take
Enzo Biochem exited the third quarter of fiscal 2024 with encouraging top-line and bottom-line results. Robust performances by the majority of its geographic regions were impressive. The expansion of gross margin bodes well.
Last month, the company launched an enhanced website with e-commerce functionality and an optimized user experience. Management expects that this will provide its customers better access to the products and support they need. This raises our optimism about the stock.
However, Enzo Biochem’s continued loss per share in the reported quarter was disappointing. The decline in the revenues from the United States was discouraging.
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Enzo Biochem, Inc. (ENZ) : Free Stock Analysis Report
