Marrone Bio Innovations Inc (NASDAQ:MBII)

Mixed Financial Results for Marrone Bio Innovations Inc (NASDAQ:MBII)

Marrone Bio Innovations Inc (NASDAQ:MBII)

Marrone Bio Innovations Inc (NASDAQ:MBII) (MBI) reported a Q3 2017 EPS loss of (-$0.27) against a consensus analyst estimate of (-$0.24), and a loss of (-$0.29) for Q3 2016. However, revenues increased 16%, and gross margins increased by 41% which has fueled a 11% gain in late-morning trading.

Marrone Bio Innovations Inc (NASDAQ:MBII)

Dr. Pam Marrone, CEO of Marrone Bio Innovations Inc (NASDAQ:MBII), made a statement regarding the company’s performance and future prospects “We experienced several noteworthy catalysts in the third quarter of 2017… Despite these major events, unfavorable weather conditions reduced the number of expected sprays in several of our key markets. Historically, the third quarter produces the lowest sales of the year and is the most unpredictable, evidenced by hurricanes Irma and Maria which significantly impacted our sales in Florida and Puerto Rico.”

Marrone Bio Innovations Inc (NASDAQ:MBII) develops and distributes pest management solutions on a global scale. Marrone Bio’s help customers operate more sustainably while improving plant health and increasing crop yields. The company currently has six commercially available products (Regalia®, Grandevo®, Venerate®, Majestene®, Haven™ and Zequanox®), with Stargus™ planned for launch later in 2017 as well as seven other product candidates in various stages of the company’s rapid development pipeline.

Marrone Bio Developments

The company received EPA registration for MBI-110 (Stargus) for specialty crops and Amplitude for row crops. MBI plans to launch Stargus in the United States market in 2017. As part of MBI’s collaboration with Evogene, transgenic plants carrying MBI’s insecticidal genes were developed and one candidate showed promising results (100% kill) against cabbage looper. Additional tests are in progress. Finally, the company signed new distribution agreements in Africa with regionally significant firms such as ÉLÉPHANT VERT in North Africa and Kenya Biologics in Kenya and Tanzania.

MBII Stock Performance

MBII stock dropped from the $2.50 level in late 2016, then met strong support at the $1 mark. Over the years, the company’s EPS and sales figure have trended positively. In 2012, the company had an EPS loss of (-$10.36). In the years that followed, losses continued by at smaller amounts. In 2016 the EPS loss was (-$1.26). Sales have trended upwards since 2012 when the company reported $7.1 million. By 2016 that number improved to $14 million.

The consensus of analyst gives MBII stock a one-year price target of $2.50. However, the stock’s 52-week high is $2.61. Three investment firms follow Marrone Bio Innovations Inc (NASDAQ:MBII). One rates MBII shares as a “Strong Buy” while two rate the stock as a “Hold”.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.