Maravai LifeSciences (MRVI) Reports Weak Q4, Faces Investor Class Action

Core Viewpoint - Maravai LifeSciences Holdings, Inc. reported disappointing fourth-quarter 2024 earnings, missing analyst expectations and facing a significant price target downgrade due to financial reporting issues and a securities class action lawsuit [1][4][5]. Financial Performance - The company posted an adjusted loss per share of $0.06, which was wider than the expected loss of $0.04, with quarterly revenue at $56.6 million, slightly below the consensus forecast of $56.67 million [2]. - For the full year, Maravai reported revenue of $259 million, consistent with its guidance, but the GAAP net loss widened to $260 million from a $138 million loss in 2023 [3]. Analyst Reactions - Following the disappointing results, Stifel analysts reduced their price target for Maravai by 50%, from $10.00 to $5.00, reflecting concerns over the company's near-term financial outlook and weaker-than-expected revenues and EBITDA [4]. Legal Issues - Maravai is facing a securities class action lawsuit alleging false and misleading statements regarding its financial reporting, particularly concerning revenue recognition and goodwill accounting [5][9]. - The lawsuit claims that the company postponed its fiscal 2024 earnings release, leading to a nearly 22% drop in stock price [5]. Accounting Concerns - CFO Kevin Herde acknowledged errors in revenue recognition, specifically a $3.9 million misrecording due to shipment timing issues, and revealed an $11.9 million non-cash goodwill impairment charge related to the Alphazyme acquisition [6][7]. - These issues highlighted material weaknesses in Maravai's internal controls over financial reporting, which are central to the allegations in the lawsuit [7][9].