ENZ Stock Up Following FY24 Earnings Uptick, Gross Margin Expands

Core Insights - Enzo Biochem reported a narrower loss per share of 19 cents in fiscal 2024 compared to a loss of 51 cents in fiscal 2023 [1] Revenue Analysis - Enzo Biochem's Products revenues for the fiscal fourth quarter were $7.5 million, a decrease of 16% year over year due to a shift in ordering patterns [2] - For fiscal 2024, total Products revenues were $31.9 million, reflecting a 2.7% increase from fiscal 2023, driven by enhanced marketing efforts in drug development and cell and gene therapy markets [2] Geographic Performance - In fiscal 2024, revenues from the United States were $19.5 million, up 5.1% from fiscal 2023 [4] - European revenues totaled $8.6 million, an increase of 1.3% from the previous year [4] - Asia Pacific revenues were $3.9 million, down 5% from fiscal 2023 [4] Gross Margin Insights - The gross margin for the fiscal fourth quarter improved to 43%, up from 35% in the prior year, attributed to inventory provision adjustments and cost containment initiatives [5] - For fiscal 2024, the gross margin was 45.9%, compared to 42.5% in fiscal 2023, positively impacted by a more profitable product mix and lower input costs [6] Operating Expenses - Selling, general and administrative expenses decreased by 20.1% to $21.7 million in fiscal 2024 [7] - Research and development expenses fell by 32.3% to $2.6 million compared to fiscal 2023 [7] Profitability Metrics - The operating loss for fiscal 2024 was $12.4 million, an improvement from the $24.7 million loss in the previous year [8] - Adjusted EBITDA for fiscal 2024 was a loss of $6.5 million [8] - The net loss from continuing operations was $9.8 million, narrower than the $25 million loss in fiscal 2023 [8] Liquidity and Debt Management - At the end of fiscal 2024, cash and cash equivalents stood at $52.4 million, down from $82.4 million at the end of fiscal 2023 [8] - Long-term debt was $0.2 million at fiscal 2024-end, a decrease from $0.3 million at the end of fiscal 2023 [9] - Cumulative net cash used in operating activities was $26.3 million, down from $36.9 million a year ago [9] Overall Assessment - Enzo Biochem showed encouraging top-line and bottom-line results for fiscal 2024, with strong performances across most geographic regions and an expanding gross margin [10] - However, the continued loss per share and revenue decline in the Asia Pacific region were noted as disappointing factors [10]