Shares of sustainable energy company Amyris Inc. tumbled Tuesday after the company said it will hold a conference call Thursday to update investors on its progress and near-term goals, more than two weeks before its scheduled earnings report.
THE SPARK: The brief announcement came after markets closed Monday, and the Emeryville, Calif., company did not elaborate. Amyris will release its results for the fourth quarter after markets close on Feb. 27.
THE BIG PICTURE: Amyris converts plant sugars into hydrocarbon molecules that can be used in a range of products sold as renewable ingredients in cosmetics, flavors, fragrances, lubricants and diesel and jet fuel.
THE ANALYSIS: Raymond James analyst Pavel Molchanov said in a research note that the Thursday call may be a routine update, but it seemed "unusual and disconcerting," given that only 18 days separate that call from the earnings announcement.
The analyst said an "abundance of caution" prompted him to lower his rating on the stock to "outperform" from "strong buy."
"This rating change does not signify any change in our fundamental stance on Amyris' technology platform, business model or commercialization plans — which, to be crystal clear, remains broadly positive," Molchanov wrote.
SHARE ACTION: Down 6.8 percent, or 71 cents, to $9.73 in afternoon trading. The share price has fallen steadily from a high of $33.85 in the past year.
There are no comments yet