DNMR - Danimer shares rise despite Q3 top and bottom line misses

Danimer Scientific ( NYSE: DNMR ) shares are trading around +6% up even after Q3 earnings and revenue fell below analysts' estimates.

Q3 GAAP EPS was -$0.94 on revenue of $10.45M (-21.8% Y/Y), with lower profits attributed to reduced PLA resin sales and higher fixed costs associated with increased PHA capacity.

However, Danimer highlighted the strength of PHA-based revenues, which it expects to drive a significant increase overall profitability in the year ahead. PHA-based product sales rose 26% to account for 51% of total revenue and 59% of products revenue.

CEO Stephen Croskrey said: "We are deepening relationships with existing customers and engaging with a growing number of new potential customers to capture the increasingly strong interest for our biodegradable solutions. We remain focused on accelerating our growth trajectory as we prepare for several significant expected customer product launches in the months ahead."

He added: "With additional capacity available to us from the expansion of our Kentucky facility during the second quarter, we believe we are extremely well-positioned for several significant expected customer product launches in the months ahead."

Danimer has also narrowed its adjusted EBITDA outlook for 2022 to a range of -$45M to -$40M, with capex of $165M-$170M and a year-end cash balance of $60M-$65M.

Croskrey noted: "Interest in our solutions is increasingly strong, while on the other hand, many existing and potential customers are still dealing with supply chain bottlenecks, inflation and overall economic concerns that impact the timing of orders and deliveries. While these factors may continue to impact specific customer timelines in the near-term, we have a diverse lineup of several significant customer product launches starting as early as this year. That said, we expect a bulk of these launches to occur in the first half of 2023."

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