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  • investora2z investora2z Aug 24, 2013 6:52 AM Flag


    The stock has corrected about 11% from the 52 week high made just before the earnings release. The volume in the last trading session was relatively high, and the fall was also huge. The Q2'13 revenues increased by about 22% on a yoy basis, but the net loss also increased slightly. In the second quarter 2013, the revenues were $97.23 million compared to around $79.88 million in Q2'12. The net loss was $4.38 million compared to net loss of $4.3 million in Q2'12. For the first six months, the sales increased from $163.47 million in H1'12 to $194.99 million in H1'13. The net loss in H1'13 was $7.24 million or 22 cents per share compared to $10.286 million or 32 cents per share in H1'12. Third party products continued to be the main contributor to the sales. The gross margins declined from 23.8% in Q2'12 to 22.3% in Q2'13. Sequentially, the revenues declined, and the net loss increased substantially. This was against the trend of the past couple of quarters where the company was able to increase the topline and reduce the losses significantly. The stock had run up quite a bit prior to the earnings, but the earnings did not deliver any major positive surprise. The appreciation had made it more vulnerable to correction. This can be a bit negative for the stock in the short term. It needs to bolster growth and also show marked improvement in the margins to regain the upward momentum. Here, high growth potential offerings from smaller companies may help as better terms can be negotiated. Chromadex Corporation (CDXC) has launched a couple of high potential molecules recently. Vitacost can look for other products which may be more in line with its product line and growth strategy. The next earnings has now become extra-crucial, and any negative surprise may make the sentiments distinctly negative.