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Marrone Bio (MBII) Q2 Earnings and Revenues Miss Estimates

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Marrone Bio Innovations, Inc. logged a net loss of $3 million or 2 cents per share in second-quarter 2021 compared with a loss of $2.9 million or 2 cents per share a year ago. Loss per share was wider than the Zacks Consensus Estimate of a loss of a penny per share.

Marrone Bio Innovations, Inc. Price, Consensus and EPS Surprise

 

Marrone Bio Innovations, Inc. Price, Consensus and EPS Surprise

Marrone Bio Innovations, Inc. price-consensus-eps-surprise-chart | Marrone Bio Innovations, Inc. Quote

 

Revenues & Margins

Marrone Bio’s revenues rose roughly 3% year over year to $12.6 million in the quarter, but missed the Zacks Consensus Estimate of $17.6 million. Product revenues went up roughly 3% year over year to $12.5 million while license revenues were up 6% to $0.1 million in the quarter.

Revenues, in the reported quarter, were affected by severe drought in the western United States that led to reduced demand for insecticides and fungicides. Sales of seed treatment were stronger on a year-over-year basis in the United States, but weaker across Europe and Latin America due to supply chain and pandemic-related constraints. The company saw higher revenues from the Venerate family of insecticides and nematicides in specialty crop markets in Mexico and parts of Central and Latin America in the reported quarter.

Gross margin for the quarter was 61.7%, an improvement from 60.6% recorded a year ago. Operating expenses rose 8% year over year to $10.1 million.

Financials

Marrone Bio ended the quarter with cash and cash equivalents of around $17.5 million, a roughly 67% year-over-year increase. Long-term debt was around $11.3 million, down around 1% year over year.

Net cash used in operations was roughly $6.3 million for the first six months of 2021, compared with $7.7 million of cash used for the same period a year ago.

Outlook

Marrone Bio said that it expects a more normalized revenue growth rate in the second half of 2021. It sees revenue growth in the mid-teens and gross margins in the upper 50% range for the full year. It also expects operating expenses to remain in line with 2020 levels, adjusting for inflation.

Price Performance

Shares of Marrone Bio are down 16.1% over a year compared with the industry’s rise of 32.4%.

 

Zacks Investment Research
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Zacks Rank & Key Picks

Marrone Bio currently carries a Zacks Rank #3 (Hold)

Better-ranked stocks worth considering in the basic materials space include Nucor Corporation (NUE - Free Report) , ArcelorMittal (MT - Free Report) and AdvanSix Inc. (ASIX - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Nucor has a projected earnings growth rate of 489.2% for the current year. The company’s shares have surged around 158% in a year.

ArcelorMittal has an expected earnings growth rate of 1,731.2% for the current year. The company’s shares have shot up around 191% in the past year.

AdvanSix has an expected earnings growth rate of around 160.4% for the current year. The company’s shares have gained roughly 158% in the past year.


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