Investing.com -- Shares in Evotec (ETR:EVTG) declined around 5% in Frankfurt trading Tuesday after the German biotech firm reported weaker-than-expected first-quarter results.
The company posted a net loss of 0.18 euros per diluted share for the quarter, widening from a loss of 0.12 euros in the same period last year. Analysts polled by FactSet had forecast a smaller loss of 0.08 euros.
The company’s net loss before taxes increased to 29.85 million euros, compared to 26.78 million euros a year earlier. Adjusted EBITDA dropped to 3.11 million euros from 7.82 million euros, while the operating loss widened to 20.01 million euros from 18.21 million euros.
Revenue declined to 200 million euros in the three months ended March 31, down from 208.7 million euros a year earlier and missing the 208.2 million euro estimate from analysts polled by FactSet.
Looking ahead, Evotec maintained its full-year guidance. The company continues to expect 2025 revenue between 840 million euros and 880 million euros, in line with the analyst consensus of 856.9 million euros.
Adjusted EBITDA for the year is projected to range from 30 million euros to 50 million euros, and R&D spending is expected to come in between 40 million euros and 50 million euros.
"Given that FY2025 guidance was first provided less than three weeks ago, we are not surprised that the company’s outlook is unchanged," RBC Capital Markets analysts commented.
While Evotec’s net debt has risen to 6x last-twelve-months (LTM) EBITDA, the update is unlikely to significantly affect investor sentiment, analysts said.
They note there is “little to change investors’ views on the shares, with the shares’ highly-discounted valuation reflecting the company’s volatile track record, challenged CRO end-market and current transitionary year,” which is being offset by investor optimism around the new management team’s vision and communication.