Inotiv ( NASDAQ: NOTV ) stock rose ~14% premarket Aug. 11 after Q3 revenue beat estimates and the company raised its fiscal 2022 outlook.
Q3 total revenue grew +654.26% to $172.67M. The company said the growth was driven by a rise of $26.3M revenue from its Discovery and Safety Assessment (DSA) segment and $123.4 million of incremental revenue from its Research Models and Services (RMS) business. Revenue was higher due to incremental revenue from acquisitions and internal growth from increased capacity for customer demand and favorable pricing.
"Our results for the third quarter were above our expectations. Driven by a combination of organic growth, acquisitions and favorable pricing, we reported record revenues, Adjusted EBITDA, and backlog," said President and CEO Robert Leasure Jr.
Revenue from DSA segment grew +114.8% Y/Y to $49.2M.
The company added that book-to-bill ratio was 1.19x for the DSA services business. DSA backlog was $143.2M at June 30, up from $133.6M at March 31, and $62M at June 30, 2021.
In Q3, the company incurred a net loss of ~$3.73M, compared to a net income of $2.6M in the prior year period.
Adjusted EBITDA increased +1589.26% Y/Y to to $36.98M.
Outlook :
The company raised its Fiscal 2022 revenue outlook and now expects it to be at least $550M, up from the prior forecast of at least $510M. The Consensus Revenue Estimate for fiscal 2022 is $510.20M.
Inotiv ( NOTV ) expects adjusted EBITDA margin for FY22 to be not less than 17% of forecasted annual revenues, up from prior guidance of not less than 15%.
NOTV +13.85% to $23.60 premarket Aug. 11
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Inotiv stock rises 14% on boosted FY22 outlook as Q3 revenue soars