Latest news with #MaravaiLifeSciencesHoldings
Yahoo
13-05-2025
- Business
- Yahoo
Maravai LifeSciences Holdings, Inc. (MRVI) Reports Q1 Loss, Tops Revenue Estimates
Maravai LifeSciences Holdings, Inc. (MRVI) came out with a quarterly loss of $0.08 per share versus the Zacks Consensus Estimate of a loss of $0.07. This compares to loss of $0.02 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -14.29%. A quarter ago, it was expected that this company would post a loss of $0.03 per share when it actually produced a loss of $0.06, delivering a surprise of -100%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. Maravai LifeSciences , which belongs to the Zacks Medical - Products industry, posted revenues of $46.85 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 5.46%. This compares to year-ago revenues of $64.18 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Maravai LifeSciences shares have lost about 63.7% since the beginning of the year versus the S&P 500's decline of -3.8%. While Maravai LifeSciences has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Maravai LifeSciences: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.06 on $49.79 million in revenues for the coming quarter and -$0.24 on $195.46 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Ayr Wellness Inc. (AYRWF), has yet to report results for the quarter ended March 2025. This company is expected to post quarterly loss of $0.31 per share in its upcoming report, which represents a year-over-year change of -14.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Ayr Wellness Inc.'s revenues are expected to be $108.73 million, down 7.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Maravai LifeSciences Holdings, Inc. (MRVI) : Free Stock Analysis Report Ayr Wellness Inc. (AYRWF) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
12-05-2025
- Business
- Yahoo
Maravai Lifesciences Reports First Quarter 2025 Financial Results
SAN DIEGO, Calif., May 12, 2025 (GLOBE NEWSWIRE) -- Maravai LifeSciences Holdings, Inc. (Maravai) (NASDAQ: MRVI), a global provider of life science reagents and services to researchers and biotech innovators, today reported financial results for the first quarter ended March 31, 2025, together with other business updates. Financial Highlights: Quarterly revenue of $46.9 million, Net loss of $(52.9) million (including a goodwill impairment of $12.4 million), and Adjusted EBITDA of $(10.5) million; and Revenue for the full year 2025 is expected to be in the range of $185.0 million to $205.0 million, unchanged from previous guidance. "Our first quarter revenue exceeded our guidance range, and our base business, which excludes revenue from high-volume CleanCap® for commercial vaccine programs, grew more than $4 million compared to the fourth quarter of 2024, reflecting solid execution and momentum across the business," said Trey Martin, CEO, Maravai LifeSciences. 'Our team remains committed to our return-to-growth strategy amid a dynamic and shifting macroeconomic environment. We believe our customer focus, our differentiated technologies and GMP services supporting clients from discovery through commercialization give us the best position to continue navigating the evolving landscape and drive long-term value for Maravai.' Revenue for the First Quarter 2025 Three Months Ended March 31, (Dollars in 000's) 2025 2024 Year-over-Year % Change Nucleic Acid Production $ 28,750 $ 46,016 (37.5 )% Biologics Safety Testing 18,100 18,163 (0.3 )% Total Revenue $ 46,850 $ 64,179 (27.0 )% First Quarter 2025 Financial Results by Reporting Segment Revenue for the first quarter was $46.9 million, representing a 27.0% decrease over the same period in the prior year and was driven by the following: Nucleic Acid Production revenue was $28.8 million for the first quarter, representing a 37.5% decrease year-over-year. The revenue decrease was primarily driven by a lack of high-volume CleanCap orders for commercial phase vaccine programs and lower demand for research and discovery products. Biologics Safety Testing revenue was $18.1 million for the first quarter, or relatively flat year-over-year. Net loss and Adjusted EBITDA (non-GAAP) were $(52.9) million and $(10.5) million, respectively, for the first quarter of 2025, compared to net loss and Adjusted EBITDA (non-GAAP) of $(22.7) million and $7.8 million, respectively, for the first quarter of 2024. Revenue Guidance for Full Year 2025 Maravai's revenue guidance for the full year 2025 is based on expectations for its existing base business and does not include revenue, if any, from high-volume CleanCap orders for commercial phase vaccine programs, or potential new acquisitions, if any, or items that have not yet been identified or quantified. This guidance is also subject to a number of risks, uncertainties and other factors, including those identified in 'Forward-looking Statements' below. Revenue expectations for the full year 2025 remain in the range of $185.0 million to $205.0 million. Conference Call and Webcast Maravai's management will host a conference call today at 2:00 p.m. PT/ 5:00 p.m. ET to discuss its financial results for the first quarter of 2025 and its financial guidance for 2025. To participate in the conference call by telephone, approximately 10 minutes before the call, dial (800) 343-4849 or (203) 518-9848 and reference Maravai LifeSciences, Conference ID MARAVAI. The call will also be available via live or archived webcast on the "Investors" section of the Maravai web site at LIFESCIENCES HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share amounts)(Unaudited) Three Months EndedMarch 31, 2025 2024 Revenue $ 46,850 $ 64,179 Operating expenses: Cost of revenue 39,125 38,335 Selling, general and administrative 39,564 40,885 Research and development 4,888 5,032 Goodwill impairment 12,435 — Restructuring — (1,212 ) Total operating expenses 96,012 83,040 Loss from operations (49,162 ) (18,861 ) Other income (expense): Interest expense (6,778 ) (10,864 ) Interest income 3,225 7,210 Other income 24 106 Loss before income taxes (52,691 ) (22,409 ) Income tax expense 162 271 Net loss (52,853 ) (22,680 ) Net loss attributable to non-controlling interests (22,908 ) (10,602 ) Net loss attributable to Maravai LifeSciences Holdings, Inc. $ (29,945 ) $ (12,078 ) Net loss per Class A common share attributable to Maravai LifeSciences Holdings, Inc., basic and diluted $ (0.21 ) $ (0.09 ) Weighted average number of Class A common shares outstanding, basic and diluted 143,425 132,333 MARAVAI LIFESCIENCES HOLDINGS, INC. RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION(in thousands, except per share amounts)(Unaudited) Net Loss to Adjusted EBITDA (non-GAAP) Three Months EndedMarch 31, 2025 2024 Net loss $ (52,853 ) $ (22,680 ) Add: Amortization 7,030 6,869 Depreciation 5,693 4,786 Interest expense 6,778 10,864 Interest income (3,225 ) (7,210 ) Income tax expense 162 271 EBITDA (36,415 ) (7,100 ) Acquisition integration costs (1) 767 2,498 Stock-based compensation (2) 10,403 12,057 Merger and acquisition related expenses (3) 1,178 30 Acquisition related tax adjustment (4) (71 ) (113 ) Goodwill impairment (5) 12,435 — Restructuring costs (6) — 19 Other (7) 1,154 404 Adjusted EBITDA (non-GAAP) $ (10,549 ) $ 7,795 Net Loss attributable to Maravai LifeSciences Holdings, Inc. to Adjusted Net Loss (non-GAAP) and Adjusted Fully Diluted Loss Per Share (non-GAAP) Three Months EndedMarch 31, 2025 2024 Net loss attributable to Maravai LifeSciences Holdings, Inc. $ (29,945 ) $ (12,078 ) Net loss impact from pro forma conversion of Class B shares to Class A common shares (22,908 ) (10,602 ) Adjustment to the provision for income tax (8) 5,456 2,530 Tax-effected net loss (47,397 ) (20,150 ) Acquisition integration costs (1) 767 2,498 Stock-based compensation (2) 10,403 12,057 Merger and acquisition related expenses (3) 1,178 30 Acquisition related tax adjustment (4) (71 ) (113 ) Goodwill impairment (5) 12,435 — Restructuring costs (6) — 19 Other (7) 1,154 404 Tax impact of adjustments (9) 1,095 (465 ) Net cash tax benefit retained from historical exchanges (10) — 352 Adjusted net loss (non-GAAP) $ (20,436 ) $ (5,368 ) Diluted weighted average shares of Class A common stock outstanding 255,457 252,025 Adjusted net loss (non-GAAP) $ (20,436 ) $ (5,368 ) Adjusted fully diluted loss per share (non-GAAP) $ (0.08 ) $ (0.02 ) ____________________Explanatory Notes to Reconciliations (1) Refers to incremental costs incurred to execute and integrate completed acquisitions, including retention payments related to integration that were negotiated specifically at the time of the Company's acquisition of MyChem, LLC ('MyChem') and Alphazyme, LLC ('Alphazyme'), which were completed in January 2022 and January 2023, respectively. These retention payments arise from the Company's agreements executed in connection with the acquisitions of MyChem and Alphazyme and provide incremental financial incentives, over and above recurring compensation, to ensure the employees of these companies remain present and participate in integration of the acquired businesses during the integration and knowledge transfer periods. The Company agreed to pay certain employees of Alphazyme retention payments totaling $9.3 million as of various dates but primarily through December 31, 2025, as long as these individuals continue to be employed by the Company. The Company agreed to pay the sellers of MyChem retention payments totaling $20.0 million as of the second anniversary of the closing of the acquisition date as long as two senior employees (who were also the sellers of MyChem) continue to be employed by TriLink. The Company considers the payment of these retention payments as probable and is recognizing compensation expense related to these payments in the post-acquisition period ratably over the service period. Retention payment expenses were $0.7 million (Alphazyme) and $2.4 million (MyChem $1.8 million; Alphazyme $0.6 million) for the three months ended March 31, 2025 and 2024, respectively. Retention expenses for MyChem concluded in the first quarter of 2024, and following the payments in the first quarter of 2024, there are no further retention expenses payable for MyChem. The remaining retention accrual for Alphazyme is $2.3 million, expected to be accrued ratably each quarter through December 31, 2025, with payments expected to be made in the first quarter of 2026. There are no further cash-based retention payments planned, other than those disclosed above, for acquisitions completed as of March 31, 2025. (2) Refers to non-cash expense associated with stock-based compensation. (3) Refers to diligence, legal, accounting, tax and consulting fees incurred in connection with acquisitions that were pursued but not consummated. (4) Refers to non-cash income associated with adjustments to the indemnification asset recorded in connection with the acquisition of MyChem. (5) Refers to goodwill impairment recorded for our Nucleic Acid Production segment. (6) Refers to restructuring costs (benefit) associated with the Cost Realignment Plan, which was implemented in November 2023. For the three months ended March 31, 2024, stock-based compensation benefit of $1.2 million related to forfeited stock awards in connection with the restructuring is included on the stock-based compensation line item. (7) For the three months ended March 31, 2025, refers to severance payments, inventory step-up charges in connection with the acquisition of Alphazyme, and other non-recurring costs that are deemed to be outside of the ordinary course of business. For the three months ended March 31, 2024, refers to inventory step-up charges and certain other adjustments in connection with the acquisition of Alphazyme, and other non-recurring costs that are deemed to be outside of the ordinary course of business. (8) Represents additional corporate income taxes at an assumed effective tax rate of approximately 24% applied to additional net loss attributable to Maravai LifeSciences Holdings, Inc. from the assumed proforma exchange of all outstanding shares of Class B common stock for shares of Class A common stock. (9) Represents income tax impact of non-GAAP adjustments at an assumed effective tax rate of approximately 24% and the assumed proforma exchange of all outstanding shares of Class B common stock for shares of Class A common stock. (10) Represents income tax benefits due to the amortization of intangible assets and other tax attributes resulting from the tax basis step up associated with the purchase or exchange of Maravai Topco Holdings, LLC units and Class B common stock, net of payment obligations under the Tax Receivable Agreement. Non-GAAP Financial Information This press release contains financial measures that have not been calculated in accordance with accounting principles generally accepted in the U.S. (GAAP). These non-GAAP measures include: Adjusted EBITDA and Adjusted fully diluted Earnings Per Share (EPS). Maravai defines Adjusted EBITDA as net income (loss) before interest, taxes, depreciation and amortization, certain non-cash items and other adjustments that we do not consider representative of our ongoing operating performance including, as applicable: (i) incremental costs incurred to execute and integrate completed acquisitions, and associated retention payments; (ii) non-cash expenses related to share-based compensation; (iii) expenses incurred for acquisitions that were pursued but not consummated (including legal, accounting and professional consulting services); (iv) non-cash income associated with adjustments to the carrying value of the indemnification asset recorded in connection with completed acquisitions; (v) impairment charges; (vi) restructuring costs; (vii) severance payments; and (viii) inventory step-up charges in connection with completed acquisitions. Maravai defines Adjusted Net Loss as tax-effected earnings before the adjustments described above, and the tax effects of those adjustments. Maravai defines Adjusted fully diluted EPS as Adjusted Net Loss divided by the diluted weighted average number of shares of Class A common stock outstanding for the applicable period, which assumes the proforma exchange of all outstanding units of Maravai Topco Holdings, LLC (paired with shares of Class B common stock) for shares of Class A common stock. These non-GAAP measures are supplemental measures of operating performance that are not prepared in accordance with GAAP and do not represent, and should not be considered as, an alternative to net loss, as determined in accordance with GAAP. Management uses these non-GAAP measures to understand and evaluate Maravai's core operating performance and trends and to develop short-term and long-term operating plans. Management believes the measures facilitate comparison of Maravai's operating performance on a consistent basis between periods and, when viewed in combination with its results prepared in accordance with GAAP, help provide a broader picture of factors and trends affecting Maravai's results of operations. These non-GAAP financial measures have limitations as an analytical tool, and you should not consider them in isolation, or as a substitute for analysis of Maravai's results as reported under GAAP. Because of these limitations, they should not be considered as a replacement for net loss, as determined by GAAP, or as a measure of Maravai's profitability. Management compensates for these limitations by relying primarily on Maravai's GAAP results and using non-GAAP measures only for supplemental purposes. The non-GAAP financial measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. About Maravai Maravai is a leading life sciences company providing critical products to enable the development of drug therapies, diagnostics and novel vaccines and to support research on human diseases. Maravai's companies are leaders in providing products and services in the fields of nucleic acid synthesis and biologics safety testing to many of the world's leading biopharmaceutical, vaccine, diagnostics, and cell and gene therapy companies. For more information about Maravai LifeSciences, visit Forward-looking Statements This press release contains, and Maravai's officers and representatives may from time-to-time make, 'forward-looking statements' within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Investors are cautioned that statements in this press release which are not strictly historical statements constitute forward-looking statements, including, without limitation, statements regarding Maravai's financial guidance for 2025; Maravai's customer focus and differentiated technologies and services helping Maravai navigate an evolving market and drive long-term value creation; growth opportunities, including both organic and inorganic growth; Maravai's acquisition of the DNA and RNA business of Officinae Bio and the assets of Molecular Assemblies, Inc. and the expected benefits thereof; and future innovations, constitute forward-looking statements and are identified by words like 'believe,' 'expect,' 'see,' 'project,' 'may,' 'will,' 'should,' 'seek,' 'anticipate,' or 'could' and similar expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on management's current beliefs, expectations and assumptions regarding the future of Maravai's business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of management's control. Maravai's actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause Maravai's actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: The level of Maravai's customers' spending on and demand for outsourced nucleic acid production and biologics safety testing products and services. Maravai's operating results are prone to significant fluctuation, which may make Maravai's future operating results difficult to predict and could cause Maravai's actual operating results to fall below expectations or any guidance Maravai may provide. Uncertainty regarding the extent and duration of Maravai's revenue associated with high-volume sales of CleanCap® for commercial phase vaccine programs and the dependency of such revenue, in important respects, on factors outside our control. The impact of shifts in U.S. and foreign trade policy, including the imposition of tariffs, trade restrictions and retaliatory actions, on demand for Maravai's products and services and Maravai's customers' ability to commit funds to purchase such products and services. Maravai's ability to attract, retain and motivate a highly skilled workforce, including qualified key personnel. Use of Maravai's products by customers in the production of vaccines and therapies, some of which represent relatively new and still-developing modes of treatment, and the impact of unforeseen adverse events, negative clinical outcomes, development of alternative therapies, or increased regulatory scrutiny of these modes of treatment and their financial cost on Maravai's customers' use of its products and services. Competition with life science, pharmaceutical and biotechnology companies who are substantially larger than Maravai and potentially capable of developing new approaches that could make Maravai's products, services and technology obsolete. The potential failure of Maravai's products and services to not perform as expected and the reliability of the technology on which Maravai's products and services are based. The risk that Maravai's products do not comply with required quality standards. Market acceptance of Maravai's life science reagents. Maravai's ability to efficiently manage its strategic acquisitions and organic growth opportunities. Natural disasters, geopolitical instability (including the ongoing military conflicts in Ukraine and the Middle East) and other catastrophic events. Risks related to Maravai's acquisitions, including whether Maravai achieves the anticipated benefits of acquisitions of businesses or technologies. Product liability lawsuits. Maravai's dependency on a limited number of customers for a high percentage of its revenue and Maravai's ability to maintain its current relationships with such customers. Maravai's reliance on a limited number of suppliers or, in some cases, sole suppliers, for some of Maravai's raw materials and the risk that Maravai may not be able to find replacements or immediately transition to alternative suppliers. The risk that Maravai's products become subject to more onerous regulation by the U.S. Food and Drug Administration or other regulatory agencies in the future. Maravai's ability to obtain, maintain and enforce sufficient intellectual property protection for Maravai's current or future products. The risk that a future cyber-attack or security breach cannot be prevented. Maravai's ability to protect the confidentiality of Maravai's proprietary information. The risk that one of Maravai's products may be alleged (or found) to infringe on the intellectual property rights of third parties. Compliance with Maravai's obligations under intellectual property license agreements. Maravai's or Maravai's licensors' failure to maintain the patents or patent applications in-licensed from a third party. Maravai's ability to adequately protect Maravai's intellectual property and proprietary rights throughout the world. Maravai's existing level of indebtedness and Maravai's ability to raise additional capital on favorable terms. Maravai's ability to generate sufficient cash flow to service all of Maravai's indebtedness. Maravai's potential failure to meet Maravai's debt service obligations. Restrictions on Maravai's current and future operations under the terms applicable to Maravai's credit agreement. Maravai's dependence, by virtue of Maravai's principal asset being its interest in Maravai Topco Holdings, LLC ('Topco LLC'), on distributions from Topco LLC to pay Maravai's taxes and expenses, including payments under a tax receivable agreement with the former owners of Topco LLC (the 'Tax Receivable Agreement' or 'TRA') together with various limitations and restrictions that impact Topco LLC's ability to make such distributions. The risk that conflicts of interest could arise between Maravai's shareholders and Maravai Life Sciences Holdings, LLC ('MLSH 1'), the only other member of Topco LLC, and impede business decisions that could benefit Maravai's shareholders. The substantial future cash payments Maravai may be required to make under the Tax Receivable Agreement to MLSH 1 and Maravai Life Sciences Holdings 2, LLC ('MLSH 2'), an entity through which certain of Maravai's former owners hold their interests in the Company and the negative effect of such payments. The fact that Maravai's organizational structure, including the TRA, confers certain benefits upon MLSH 1 and MLSH 2 that will not benefit Maravai's other common shareholders to the same extent as they will benefit MLSH 1 and MLSH 2. Maravai's ability to realize all or a portion of the tax benefits that are expected to result from the tax attributes covered by the Tax Receivable Agreement. The possibility that Maravai will receive distributions from Topco LLC significantly in excess of Maravai's tax liabilities and obligations to make to make payments under the Tax Receivable Agreement. Factors that could lead to future impairment of Maravai's goodwill and other amortizable intangible assets. Unanticipated changes in effective tax rates or adverse outcomes resulting from examination of Maravai's income or other tax returns. Risks and uncertainty related to the restatement of Maravai's previously issued financial statements. Maravai's ability to remediate the material weaknesses in its internal control over financial reporting in a timely manner. Maravai's ability to design and maintain effective internal control over financial reporting in the future. The fact that investment entities affiliated with GTCR, LLC currently control a majority of the voting power of Maravai's outstanding common stock, and it may have interests that conflict with Maravai's or yours in the future. Risks related to Maravai's 'controlled company' status within the meaning of the corporate governance standards of NASDAQ. The potential anti-takeover effects of certain provisions in Maravai's corporate organizational documents. Potential sales of a significant portion of Maravai's outstanding shares of Class A common stock. Potential preferred stock issuances and the anti-takeover impacts of any such issuances. Such other factors as discussed throughout the sections entitled 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations' in Maravai's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, as well as other documents Maravai files with the Securities and Exchange Commission. Any forward-looking statements made in this release are based only on information currently available to management and speak only as of the date on which it is made. Maravai undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise. CONTACT: Contact Information: Deb Hart Maravai LifeSciences + 1 858-988-5917 ir@ in to access your portfolio
Yahoo
08-03-2025
- Business
- Yahoo
Maravai LifeSciences Holdings, Inc. (MRVI): Why Are Hedge Funds Bullish On This Cash-Rich Penny Stock?
We recently compiled a list of the . In this article, we are going to take a look at where Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI) stands against the other cash-rich penny stocks. Shares priced under $5, commonly referred to as penny stocks, are a tempting bet for investors chasing big returns with minimal upfront investment. They typically come from smaller companies worth less than $300 million and are known for their wild price swings, low liquidity, and high risk. While they can deliver massive gains, they are just as likely to lead to steep losses due to limited financial data and unpredictable price movements. Speculative investors are drawn to them, but smart investing means balancing these high-risk picks with more stable assets. Sometimes these stocks are undervalued, offering early investors a shot at big rewards if the company takes off. For example, many investors regret not buying up shares of Jeff Bezos' e-commerce giant when the company went public in 1997, with shares priced under $2. By 1998, it had already shed its penny stock label, and the last time it dropped under $100 was back in 2009. Similarly, investors lament not picking up the iPhone maker's shares back in 2003, when it was trading at $6.56 and almost a penny stock. Penny stocks typically come from small-cap and mid-cap companies, which have historically delivered higher returns than large-cap stocks due to their growth potential and higher risk. However, in recent years, these smaller companies have struggled to keep up, as large-cap stocks, especially tech giants, have significantly outperformed. One primary reason is the shifting composition of major stock indices. The broader market's dominance by a few mega-cap companies has skewed overall market performance. If the Magnificent Seven stocks were excluded each year, the market's lead over the small-cap Russell would shrink considerably. Small-cap stocks ended 2024 with their second consecutive positive quarter, rising 0.3% in the fourth quarter, as reported by Royce Investment Partners. However, they still could not keep up with large-cap stocks, as the Russell large cap index gained 2.7%. Despite some volatility, small-cap stocks reached a new high in late November, more than three years after their last peak, making it one of the longest recovery periods in the index's history. In 2025, market volatility is expected to return to normal levels. But instead of seeing it as a threat, long-term investors view volatility as an opportunity. History shows that after periods of high market turbulence, small-cap stocks often deliver stronger returns than their large-cap counterparts. Keeping that in mind, let's take a look at some cash-rich penny stocks which are Wall Street favorites as well. For this article, we used the Finviz stock screener to find penny stocks with strong cash reserves. We filtered for companies with stocks priced under $5 and a current ratio (CR) above 2, which indicates they have more assets than liabilities, due to high cash reserves, receivables, or inventory. After that, we manually looked for companies with a trailing twelve-month (TTM) operating cash flow of over $20 million as of December 31, 2024 and picked 12 stocks with the highest cash reserves. We also included hedge fund sentiment as of Q4 2024 and we've ranked the list in ascending order of the number of hedge fund holders in each firm. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A researcher in a laboratory coat working with laboratory equipment for nucleic acids. TTM Operating Cash Flow as of December 31, 2024: $29,893,000 Number of Hedge Fund Holders: 25 Share Price as of March 4: $3.065 Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI) provides products for drug development, diagnostics, and biopharma research. The company specializes in nucleic acid production, providing RNA and DNA products for gene therapy, vaccines, and molecular diagnostics. It also focuses on biologics safety testing, offering tools to detect impurities in biopharmaceutical manufacturing. MRVI is one of the best cash-rich stocks to monitor. On January 28, 2025, Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI) acquired key assets from Molecular Assemblies to strengthen its work in next-gen mRNA and CRISPR therapies. CEO Trey Martin emphasized Molecular Assemblies' innovative enzymatic DNA synthesis technology and Maravai's plans to enhance it with TriLink and Alphazyme resources. Among the hedge funds tracked by Insider Monkey's fourth quarter database, 25 funds reported owning stakes in Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI), compared to 31 funds in the prior quarter. 12 West Capital Management was the biggest stakeholder of the company, with 11.6 million shares worth $63 million. Overall MRVI ranks 6th on our list of the best cash-rich penny stocks to buy. While we acknowledge the potential of MRVI as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MRVI but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Associated Press
08-03-2025
- Business
- Associated Press
MRVI INVESTOR ALERT: Robbins Geller Rudman & Dowd LLP Announces that Maravai LifeSciences Holdings, Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit
The law firm of Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of Maravai LifeSciences Holdings, Inc. (NASDAQ: MRVI) securities between August 7, 2024 and February 24, 2025, both dates inclusive (the 'Class Period'), have until May 5, 2025 to seek appointment as lead plaintiff of the Maravai class action lawsuit. Captioned Nelson v. Maravai LifeSciences Holdings, Inc., No. 25-cv-00499 (S.D. Cal.), the Maravai class action lawsuit charges Maravai and certain of Maravai's top executives with violations of the Securities Exchange Act of 1934. If you suffered substantial losses and wish to serve as lead plaintiff of the Maravai class action lawsuit, please provide your information here: You can also contact attorneys J.C. Sanchez or of Robbins Geller by calling 800/449-4900 or via e-mail at [email protected]. CASE ALLEGATIONS: Maravai is a provider of biologics to support clinical research. The Maravai class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Maravai lacked adequate internal controls over financial reporting related to revenue recognition; (ii) as a result, Maravai inaccurately recognized revenue on certain transactions during fiscal 2024; and (iii) Maravai's goodwill was overstated. The Maravai class action lawsuit further alleges that on February 25, 2025, Maravai revealed that it was postponing its fiscal 2024 earnings release and would delay filing its annual report, noting that Maravai required additional time to complete its year-end financial close for reasons related primarily to 'its assessment of a potential non-cash impairment charge related to goodwill associated with its previous acquisition of Alphazyme LLC,' 'an error identified during the close process with respect to revenue recognition associated with a single shipment identified in year-end audit procedures that resulted in approximately $3.9 million in revenue being recorded in the final week of the second quarter of 2024 upon shipment when it should have been recorded in the first week of the third quarter of 2024 upon receipt by the customer,' and 'the effectiveness of its disclosure controls and procedures and internal controls over financial reporting as of December 31, 2024, and any remediation, including with respect to remediation of a material weakness in its internal controls over revenue recognition identified by management.' On this news, the price of Maravai stock fell nearly 22%, according to the complaint. THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Maravai securities during the Class Period to seek appointment as lead plaintiff in the Maravai class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Maravai class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Maravai class action lawsuit. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Maravai class action lawsuit. ABOUT ROBBINS GELLER: Robbins Geller Rudman & Dowd LLP is one of the world's leading law firms representing investors in securities fraud cases. Our Firm has been #1 in the ISS Securities Class Action Services rankings for six out of the last ten years for securing the most monetary relief for investors. We recovered $6.6 billion for investors in securities-related class action cases – over $2.2 billion more than any other law firm in the last four years. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs' firms in the world and the Firm's attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Past results do not guarantee future outcomes. Services may be performed by attorneys in any of our offices. J.C. Sanchez, Jennifer N. Caringal 655 W. Broadway, Suite 1900, San Diego, CA 92101 SOURCE: Robbins Geller Rudman & Dowd LLP Copyright Business Wire 2025. PUB: 03/07/2025 09:30 PM/DISC: 03/07/2025 09:29 PM
Yahoo
26-02-2025
- Business
- Yahoo
Maravai LifeSciences Postpones its Fourth Quarter and Full Year 2024 Earnings Release and Conference Call
SAN DIEGO, Feb. 25, 2025 (GLOBE NEWSWIRE) -- Maravai LifeSciences Holdings, Inc. (Maravai) (NASDAQ: MRVI), a global provider of life science reagents and services to researchers and biotech innovators, today announced that it is postponing its previously announced earnings release and call scheduled for February 25, 2025. It also announced that it intends to file a Form 12b-25, Notification of Late Filing, with the U.S. Securities and Exchange Commission and will delay the filing its annual report on Form 10-K for the fiscal year ended December 31, 2024 (the '2024 Form 10-K'). Maravai intends to hold its postponed earnings call and to file the 2024 Form 10-K as soon as practicable and on or before March 18, 2025, prior to the expiration of the automatic extension of fifteen calendar days from the original 2024 Form 10-K due date of March 3, 2025. Maravai requires additional time to complete its year-end financial close process for reasons related primarily to the following items. First, Maravai requires additional time to complete its assessment of a potential non-cash impairment charge related to goodwill associated with its previous acquisition of Alphazyme LLC. Second, Maravai requires additional time to assess an error identified during the close process with respect to revenue recognition associated with a single shipment identified in year-end audit procedures that resulted in approximately $3.9 million in revenue being recorded in the final week of the second quarter of 2024 upon shipment when it should have been recorded in the first week of the third quarter of 2024 upon receipt by the customer. This revenue recognition error is not expected to impact full-year 2024 revenue, which Maravai still expects to be near the mid-point of the previously announced guidance range of $255.0 million and $265.0 million. Third, Maravai requires additional time to complete its assessment of the effectiveness of its disclosure controls and procedures and internal controls over financial reporting as of December 31, 2024, and any remediation, including with respect to remediation of a material weakness in its internal controls over revenue recognition identified by management. About Maravai Maravai is a leading life sciences company providing critical products to enable the development of drug therapies, diagnostics and novel vaccines and to support research on human diseases. Maravai's companies are leaders in providing products and services in the fields of nucleic acid synthesis and biologics safety testing to many of the world's leading biopharmaceutical, vaccine, diagnostics, and cell and gene therapy companies. For more information about Maravai LifeSciences, visit Forward-looking Statements This press release contains, and our officers and representatives may from time-to-time make, 'forward-looking statements' within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Investors are cautioned that statements in this press release which are not strictly historical statements constitute forward-looking statements, including, without limitation, statements regarding our expected revenue for full year 2024 and the expected timing of our full-year 2024 earnings release and the filing of the 2024 Form 10-K, constitute forward-looking statements and are identified by words like 'believe,' 'expect,' 'may,' 'will,' 'should,' 'seek,' 'anticipate,' or 'could' and similar expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: • potential errors made in calculating the preliminary revenue estimate for 2024; • adjustments that may arise in connection with the year-end financial close process or our independent registered public accounting firm's audit of our consolidated financial statements for 2024; • further delay in the financial close process or the related audit; and • such other factors as discussed throughout the sections entitled 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations' in Maravai's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, as well as other documents Maravai files with the Securities and Exchange Commission. Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise. CONTACT: Contact Information: Deb Hart Maravai LifeSciences + 1 858-988-5917 ir@ in to access your portfolio
