NASDAQ$NOTV

Inotiv Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Announced Q2 2023 financial results with revenue increase driven by DSA and RMS segments but net loss reported due to increased expenses.

Inotiv reported increased revenue driven by growth in both DSA and RMS segments. However, the company experienced a net loss due to higher operating expenses, including depreciation, amortization, stock compensation, legal, and third-party fees. The company is confirming revenue guidance of at least $580 million and updated Adjusted EBITDA guidance to at least $70 million for FY 2023.

  • Total revenue increased due to growth in DSA and RMS segments.
  • Consolidated net loss was $(9.6) million, impacted by higher depreciation, amortization, stock compensation, and legal fees.
  • Company is addressing NHP supply disruption issues and pursuing alternative sourcing.
  • FY 2023 revenue guidance confirmed at least $580 million, with Adjusted EBITDA guidance updated to at least $70 million.

Headline financials

Total Revenue

$151M

Previous: $140M+7.9%
EPS (adj)

-$0.39

Previous: -$0.24-62.5%
Free Cash Flow

-$9.99M

Previous: -$6.09M-64.2%
Net Income

-$9.99M

Previous: -$6.09M-64.2%
Operating Income

-$2.13M

Previous: $7.87M-127.0%
Gross Profit

$151M

Previous: $140M+7.9%
Cash & Equivalents

$24.6M

Previous: $47M-47.7%
Total Assets

$869M

Previous: $1.14B-23.8%
Stock-Based Comp

$1.78M

Previous: $1.14M+56.1%

Revenue & EPS history

Inotiv · Revenue · Quarterly

$151M

Q2 2023+7.9%vs Q2 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Inotiv · $128M total across 2 segments · Q2 2023

  • DSA
    $77.9M+99.2%
  • RMS
    $50.3M-50.3%

Forward guidance

Inotiv is confirming revenue guidance of at least $580 million and capital expenditures of no more than 5% of revenue for FY 2023. However, due to increased legal and third party fees, Adjusted EBITDA guidance is updated to at least $70 million.

Tailwinds

  • Revenue guidance of at least $580 million is confirmed.
  • Capital expenditures are expected to be no more than 5% of revenue.
  • Company expects to remain in compliance with financial covenants.
  • Integration and site optimization initiatives are progressing.
  • Growth is being achieved in new service lines.

Headwinds

  • Adjusted EBITDA guidance is updated to at least $70 million, down from $75 million.
  • Increased legal and third party fees impacted guidance
  • NHP supply disruption issues are being addressed.
  • Legal and third party fees negatively impacted net loss.
  • Inflationary pressures on product expenses, energy and wages

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.4%

Avg return

Earnings day

+3.5%

Avg return

5 days after

+5.6%

Avg return

30 days after

39%

25 / 64 earnings

Positive

+51.3%

Q4 2022

Best reaction

-35.7%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-3.6%-0.2%-72.5%
Q1 2026-14.3%-33.3%-7.1%
Q4 2025-6.3%-9.6%-42.6%
Q2 2025+11.2%+4.5%+33.8%
Q1 2025-12.9%-8.9%-41.8%
Q4 2024+0.8%-2.6%+7.4%
Q3 2024+5.0%-5.0%-15.7%
Q2 2024+0.9%-13.2%-17.0%
Q1 2024+15.0%+45.5%+126.5%
Q4 2023-24.6%-7.1%+17.2%
Q3 2023-35.7%-40.7%-49.0%
Q2 2023-7.0%+0.2%-13.1%
Q1 2023+4.5%+4.4%-30.1%
Q4 2022+51.3%+67.4%+47.4%
Q3 2022+24.9%+33.9%+16.1%
Q2 2022+42.5%+60.3%+21.1%
Q1 2022-18.7%-28.8%-47.9%
Q4 2021-13.0%+9.7%-19.8%
Q3 2021+6.5%+3.2%+13.1%
Q2 2021+4.2%+9.3%+9.6%
Q1 2021+25.2%+34.7%+48.4%
Q4 2020+20.9%+13.6%+74.3%
Q3 2020-12.8%-15.7%-10.6%
Q2 2020+6.2%+13.2%+25.4%
Q1 2020-12.3%-13.1%-20.4%
Q4 2019+13.7%+10.8%+34.5%
Q3 2019-4.8%+16.2%+73.8%
Q2 2019-2.9%-4.8%-4.3%
Q1 2019-4.9%-2.1%+31.9%
Q4 2018-2.3%-2.3%+6.8%
Q3 2018+0.0%+6.7%+7.3%
Q2 2018+0.6%-2.3%-5.2%
Q1 2018-19.6%-16.4%-15.3%
Q4 2017-3.9%-5.7%-22.1%
Q3 2017-4.0%-2.8%-9.7%
Q2 2017+6.3%+3.2%+5.7%
Q1 2017+23.1%+20.9%+64.8%
Q4 2016+10.0%-1.2%+17.5%
Q3 2016-13.6%-4.3%-18.6%
Q2 2016-6.9%
Q1 2016-14.3%
Q4 2015-3.1%
Q3 2015-8.6%
Q2 2015-1.9%
Q1 2015-5.5%
Q4 2014-7.5%
Q3 2014+15.2%
Q2 2014-2.3%
Q1 2014-9.8%
Q4 2013+9.6%
Q3 2013+25.9%
Q2 2013+9.6%
Q1 2013+3.4%
Q4 2012-5.9%
Q3 2012+4.8%
Q2 2012-7.5%
Q1 2012+0.0%
Q1 2011+0.0%
Q4 2011-3.8%
Q2 2011-3.8%
Q4 2010-4.3%
Q3 2011-4.3%
Q3 2010-4.3%
Q2 2010-3.2%

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