Why Emergent BioSolutions Stock Is Sinking Today
Shares of Emergent BioSolutions (NYSE: EBS) are sinking today, down 11.8% as of 11:27 a.m. ET. The decline came after the company announced its second-quarter financial results following the market close on Monday.
Emergent reported total Q2 revenue of $242.7 million, down 39% year over year. It posted a net loss of $56.4 million, or $1.13 per share, based on generally accepted accounting principles (GAAP). The company's adjusted net loss was $42.8 million, or $0.86 per share. The consensus estimate was for positive adjusted earnings of $0.37 per share.
The primary problem for Emergent BioSolutions remains its contract development and manufacturing organization (CDMO) business. In Q2 2021, the company's CDMO revenue totaled $190.9 million. In the recent quarter, Emergent actually reported negative CDMO revenue because of a reversal of previously recorded revenue related to its contract with Johnson & Johnson's Janssen unit.
Source Fool.com
