Enzo Biochem (ENZ) Q3 Earnings Improve Y/Y, Gross Margin Up

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Enzo Biochem, Inc. ENZ delivered a loss per share of 4 cents from continuing operations in the third quarter of fiscal 2024, narrower than the year-ago quarter’s loss of 16 cents per share.

Revenues in Detail

Enzo Biochem’s Life Sciences Products reporting unit operates in one reportable segment, Products.

The company’s Products revenues were $8 million in the fiscal third quarter, up 7.2% year over year. This was driven by robust revenues from the Europe and the Asia Pacific regions.

Geographic Details

Enzo Biochem’s operations consist of three geographic regions — the United States, Europe and Asia Pacific.

For the quarter under review, the United States reported revenues of $4.8 million, down 4.9% from the year-ago quarter.

Revenues in the Europe segment totaled $2.4 million, up 39.8% year over year. This was driven by an increase in the marketing effort in drug development product sales.

The Asia Pacific segment generated revenues of $0.9 million, up 15.4% from the year-ago quarter.

Enzo Biochem, Inc. Price, Consensus and EPS Surprise

Enzo Biochem, Inc. Price, Consensus and EPS Surprise
Enzo Biochem, Inc. Price, Consensus and EPS Surprise

Enzo Biochem, Inc. price-consensus-eps-surprise-chart | Enzo Biochem, Inc. Quote

Enzo Biochem Gross Margin

In the quarter under review, Enzo Biochem’s gross profit increased 24.1% to $3.7 million. The gross margin expanded 633 basis points (bps) to 46.5%.

Operating Expenses Analysis

Selling, general and administrative expenses decreased 27.9% to $4.5 million. Research and development expenses decreased 31.6% year over year to $0.6 million. Adjusted operating expenses of $5.1 million decreased 28.4% year over year.

Profitability

Adjusted operating loss totaled $1.4 million, narrower than the year-ago quarter’s adjusted operating loss of $4.1 million.

Enzo Biochem’s adjusted EBITDA in the reported quarter was a loss of $1.2 million compared with the year-ago quarter’s loss of $3.6 million.

In the fiscal third quarter, Enzo Biochem’s net loss from continuing operations was $2.1 million, narrower than the year-ago quarter’s net loss of $7.9 million.

Liquidity & Debt Management

Enzo Biochem exited third-quarter fiscal 2024 with cash and cash equivalents of $57.2 million compared with $60.2 million at the fiscal second-quarter end.

Total debt at the fiscal third-quarter end was $2.7 million compared with $2.8 million at the end of the fiscal second quarter.

Cumulative net cash used in operating activities at the end of third-quarter fiscal 2024 was $25.2 million compared with $19.9 million a year ago.

Our Take

Enzo Biochem exited the third quarter of fiscal 2024 with encouraging top-line and bottom-line results. Robust performances by the majority of its geographic regions were impressive. The expansion of gross margin bodes well.