Inotiv Inc Reports Third Quarter Fiscal 2024 Financial Results

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Inotiv, Inc. Reports Third Quarter Fiscal 2024 Financial Results

Inotiv, Inc. (NASDAQ:NOTV), a leading contract research organization, announced its financial results for the third quarter (Q3 FY 2024) and nine months ended June 30, 2024.

Key Financial Metrics

Metric Q3 FY 2024 Q2 FY 2024 Q3 FY 2023 YoY Change Consensus Estimate Actual vs. Estimate
Total Revenue (in millions) $105.8 N/A $157.5 -32.8% $123.4 Below
Earnings Per Share (EPS) N/A N/A N/A N/A $-0.83 N/A
Year-to-Date (YTD) Revenue $360.3 N/A $431.7 -16.5% $506.95 Below
YTD EPS N/A N/A N/A N/A $-4.02 N/A

Inotiv experienced a significant decline in revenue and a shift to a consolidated net loss in Q3 FY 2024 attributed to continued challenges in NHP (non-human primate) demand and pricing. This decline was reflected both year-over-year and against consensus estimates.

Revenue by Segment

Segment Q3 FY 2024 Revenue (in millions) Q3 FY 2023 Revenue (in millions) YoY Change Previous Guidance
Research Models and Services (RMS) $49.1 $98.2 -44.4% N/A
Discovery and Safety Assessment (DSA) $44.3 $46.8 -5.4% N/A

The RMS segment saw a considerable dip mainly due to decreased NHP-related product and service revenue while the DSA segment experienced a relatively minor decline.

Operational Data

Metric Q3 FY 2024 Q3 FY 2023
Adjusted EBITDA (in millions) $0.1 $30.5
Book-to-Bill Ratio (DSA) 0.94x N/A
DSA Backlog (in millions) $139.4 $149.1 (6M 2023)

Management Commentary

Robert Leasure Jr., President and CEO, highlighted the company's achievements despite facing challenges. He emphasized milestones such as the conclusion of government investigations and site optimization projects. Leasure expressed confidence in future improvements and recovery, particularly in the NHP segment and other business areas.

Dividends or Share Repurchase Program

No announcements regarding dividends or share repurchase programs were made.

Forward Guidance

There was no specific forward guidance provided.

Stock Price Movement

Following the earnings release, Inotiv’s stock experienced a 5.66% increase.

In summary, Inotiv’s financial results reflect significant challenges in the current quarter impacted largely by NHP demand and pricing. Despite these difficulties, management remains cautiously optimistic about future recovery and operational improvements.

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