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Marrone Bio's (MBII) Q1 Loss in Line, Revenues Up Y/Y

Zacks Equity Research

Marrone Bio Innovations, Inc. MBII posted a loss of $7.6 million or 31 cents per share in first-quarter 2017, narrower than a loss of $9.3 million or 38 cents per share a year ago. Loss per share for the quarter was in line with the Zacks Consensus Estimate. The bottom line in the reported quarter was supported by healthy revenues and margin growth.

Gross margin for the quarter was 45.1%, a significant improvement from 15% recorded a year ago. The company gained from improved capacity utilization and better product mix in the quarter.

Revenues & Shipments

Marrone Bio’s revenues soared 56% year over year to $4.2 million in the quarter. The company benefited from higher adoption of its products by farmers, expanded product labelling and growth in its customer base and specific overseas markets.

Product shipments jumped 66% year over year to $6.5 million in the quarter. This marked the second straight quarter the company has logged record product shipment levels.

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

 

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

Financials

Marrone Bio ended the quarter with cash and cash equivalents of around $1.8 million, down around 82% year over year. Long-term debt was $21 million, down around 2% year over year. Net cash used in operations was roughly $7.6 million in the quarter, an improvement from $9.7 million of cash used a year ago.

Outlook

Moving ahead, Marrone Bio said that it is well placed to maintain the healthy momentum and capture technology-driven opportunities to create meaningful value for its customers and shareholders. The company is looking to leverage its customer relationships and its comprehensive and growing portfolio of bio-based solutions to meet a vast range of unmet pest and disease challenges.

Price Performance

Marrone Bio has significantly outperformed the Zacks categorized Chemicals-Diversified industry over a year. The company’s shares have rallied around 131.3% over this period compared with the industry’s gain of 17.5% over the same period.



 

Zacks Rank & Key Picks

Marrone Bio is a Zacks Rank #3 (Hold) stock.

Better-placed companies in the chemical space include Huntsman Corporation HUN, Kronos Worldwide, Inc. KRO and The Chemours Company CC, all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Huntsman has expected long-term growth of 7%.

Kronos has expected long-term growth of 5%.

Chemours has expected long-term growth of 15.5%.

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