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Marrone Bio (MBII) Q3 Earnings In Line, Sales Trail Estimates

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Marrone Bio Innovations, Inc. logged a net loss of $4.4 million or 4 cents per share in third-quarter 2018, narrower than a loss of $8.5 million or 27 cents per share a year ago. Loss per share was in line with the Zacks Consensus Estimate.

The bottom line in the reported quarter was supported by a significant improvement in gross margin and lower operating expenses on a year-over-year basis.

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

 

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

Revenues & Margins

Marrone Bio’s revenues climbed roughly 29% year over year to $5.4 million in the quarter, but missed the Zacks Consensus Estimate of $7.2 million. Product revenues rose 28% year over year to $5.3 million while license revenues shot up 98% to $115 million in the quarter.

Gross margin for the quarter was 48.3%, an improvement from 40.9% recorded a year ago. Operating expenses fell 19% year over year to $6.8 million.

Financials

Marrone Bio ended the quarter with cash and cash equivalents of around $20.5 million, a five-and-a-half-fold year over year increase. Long-term debt was around $11.9 million, down around 43% year over year. Net cash used in operations was roughly $16.8 million for the first nine months of 2018, compared with $14.4 million of cash used for the same period a year ago.

Outlook

Marrone Bio said that it is seeing encouraging trends across its business, especially in three main areas of focus -- growing revenues, diligently managing operating expenses and increasing gross margins over the long term. The company believes that it is well placed to continue to execute its business plan, creating shareholders’ value over the long term.

Price Performance

Marrone Bio has outperformed the industry it belongs to over a year. The company’s shares have rallied around 23.9% over this period compared with the industry’s decline of 17.5% over the same period.



 

Zacks Rank & Stocks to Consider

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

Better-ranked stocks in the basic materials space include Methanex Corporation (MEOH - Free Report) , CF Industries Holdings, Inc. (CF - Free Report) and KMG Chemicals, Inc. .

Methanex has expected long-term earnings growth rate of 15% and sports a Zacks Rank #1 (Strong Buy). Its shares have gained 22% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

CF Industries has expected long-term earnings growth rate of 6% and carries a Zacks Rank #1. Its shares have rallied 40% in a year.

KMG Chemicals has expected long-term earnings growth rate of 28.5% and carries a Zacks Rank #2 (Buy). Its shares have shot up 45% in the past year.

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