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Marrone Bio (MBII) Q3 Earnings In Line, Revenues Lag Estimates

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Marrone Bio Innovations, Inc. (MBII - Free Report) logged a net loss of $4.9 million or 3 cents per share in third-quarter 2021 compared with a loss of $6.1 million or 4 cents per share a year ago. Loss per share was in line with the Zacks Consensus Estimate.

 

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 12% year over year to $9.9 million in the quarter, but missed the Zacks Consensus Estimate of $10.8 million. Product revenues went up roughly 12% year over year to $9.7 million while license revenues were down 5% to around $0.1 million in the quarter.

Revenues, in the reported quarter, were driven by strategic focus on global expansion in the major row crops. MBII also saw higher sales of biological fungicides in the quarter notwithstanding the drought conditions in specialty markets in the United States.
 
Gross margin for the quarter was 61.4%, an improvement from 56.7% recorded a year ago. Operating expenses were essentially flat year over year at $10.5 million.

Financials

Marrone Bio ended the quarter with cash and cash equivalents of around $15 million, a roughly 68% year-over-year increase. Long-term debt was around $11.2 million, down around 1% year over year.

Net cash used in operations was roughly $6.6 million for the nine months of 2021, compared with $8.6 million of cash used for the same period a year ago.

Outlook

Marrone Bio said that it now expects revenue growth in the low double-digit to mid-teens range for 2021 factoring in the uncertainties in the agricultural markets. MBII continues to expect its product mix to deliver annual gross margins in the upper 50% range. It also sees operating expenses to remain in line with 2020, plus inflation.

Price Performance

Shares of MBII are down 24.6% over a year compared with the industry’s rise of 25.1%.

 

Zacks Investment ResearchImage Source: Zacks Investment Research

 

Zacks Rank & Key Picks

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

Better-ranked stocks worth considering in the basic materials space include Nutrien Ltd. (NTR - Free Report) , Steel Dynamics, Inc. (STLD - Free Report) and Univar Solutions Inc. (UNVR - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
 
Nutrien has an expected earnings growth rate of 212.2% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 13.5% upward over the last 60 days.

Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 73.5%, on average. NTR has gained around 58% in a year.

Steel Dynamics has a projected earnings growth rate of 477.5% for the current year. STLD's consensus estimate for the current year has been revised 15.5% upward over the past 60 days.

Steel Dynamics beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 5.1%. STLD has rallied around 79% in a year.

Univar has a projected earnings growth rate of 55.2% for the current year. UNVR's consensus estimate for the current year has been revised 9% upward over the last 60 days.

Univar beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 24.1%. UNVR has gained around 58% in a year.