CDXS - Codexis Squeaks Out a Profitable Quarter on Surging Product Revenue
Enzyme engineering leader Codexis (NASDAQ: CDXS) achieved a long-awaited milestone in the third quarter of 2019: positive operating income. Investors shouldn't expect it to become a trend due to the inherent choppiness of the business. In fact, the business reported a deeper operating loss through the first nine months of 2019 compared to the year-ago period despite a 12% increase in revenue in that span. Nonetheless, the quarterly milestone provides a glimpse of what might be possible if the company can live up to its potential.
One sign of the business model's lumpiness is the fact that Codexis nearly met its full-year 2019 product revenue guidance in the first nine months of the year but declined to raise guidance. Is the company positioning itself to beat its own guidance, or will product revenue fall off a cliff in the fourth quarter? Here's what investors need to know about the latest operating results.
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