Cryoport, a leading provider of logistics solutions to the life science industry, has revised its full year outlook and released preliminary second-quarter results below analysts’ expectations. This adjustment comes in response to a global slowdown in capital equipment investment.
Revised Revenue Forecast for 2023
Cryoport now forecasts its 2023 revenue to range between $233 million and $243 million, a decrease from its previous guidance of $270 million to $290 million.
Preliminary Second-Quarter Results
The Nashville-based company expects its second-quarter revenue to be in the range of $56.5 million and $57.5 million. This reflects an 11% decrease at the midpoint compared to the same period last year. Analysts polled by FactSet had anticipated revenue of $67.1 million. Cryoport attributes these results to weaker-than-expected global demand for capital equipment, delays in clinical trial starts, and slower-than-expected ramps from certain clients.
Market Reaction
Following the release of these preliminary results, Cryoport’s shares fell by 26% to $14.38 in after-market trading. However, the stock had closed up 3.6% to $19.40 in the regular trading session.
Challenging Conditions Expected to Persist
Chief Executive Jerrell Shelton acknowledges the challenging conditions faced by the company and anticipates that they will persist in the third and fourth quarters. Despite this, Shelton remains positive about Cryoport’s long-term outlook, citing the expected growth rate of the cell and gene therapy industry.
Reporting Date
Cryoport is set to report its official second-quarter results on August 9 after the market closes.
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