CDXS - Codexis Expects Its Most Important Source of Revenue to Decline in 2020
Well, that wasn't what investors were expecting.
Codexis (NASDAQ: CDXS) announced disappointing full-year 2019 operating results on Feb. 27. It ended September needing a relatively small amount of fourth-quarter sales to meet full-year 2019 revenue guidance, but managed to miss the low end of internal projections and whiff on Wall Street expectations.
That wasn't even the most concerning part of the earnings report. Codexis expects full-year 2020 product revenue to decline compared to last year, while product gross margin is forecast to slip due to shifts in the product mix. It will mark the fourth straight year of stagnant or declining product revenue growth. How concerned should investors be about the small-cap stock?