ALVO Earnings Prediction
The chart below shows how ALVO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ALVO sees a -2.96% change in stock price 10 days leading up to the earnings, and a -8.06% change 10 days following the report. On the earnings day itself, the stock moves by +1.90%. This data can give you a slight idea of what to expect for the next quarter's release.
ALVO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
102.99M
478.60%
-48.18%
Gross Margin
61.34%
158.30%
-20.60%
Operating Margin
12.36%
102.48%
-73.26%
Net Margin
-11.06%
-98.95%
-133.70%
EPS
-0.04
-95.00%
-116.00%
No Data Available
ALVO Earnings Analysis
Alvotech Ordinary Shares Corporation (ALVO.O) Earnings Conference Call
Positive
Revenue Surge: 1. Significant Revenue Growth: Total revenues for the first nine months of 2024 reached $339 million, a nearly ninefold increase compared to $38 million during the same period in 2023.
Record Product Revenues Growth: 2. Record Product Revenues: Product revenues in Q3 2024 were $62 million, marking the highest recorded quarter for Alvotech and a 16% increase from Q2 2024.
Milestone Revenue Surge: 3. Strong Milestone Revenues: Year-to-date milestone revenues exceeded $210 million, significantly up from $8 million in the prior year, showcasing successful partnerships and product submissions.
Product Margin Improvement: 4. Improved Product Margins: Product gross margins in Q3 2024 reached 37%, more than doubling from 17% in Q2 2024, driven by increased shipments and new product launches.
Adjusted EBITDA Improvement: 5. Positive Adjusted EBITDA: Adjusted EBITDA for Q3 2024 was $23 million, a substantial improvement from negative $79 million in Q3 2023, reflecting operational efficiency and revenue growth.
Negative
FDA Inspection Findings: 1. FDA Inspection Observations: Alvotech received two observations during the recent FDA inspection, which, although deemed easily addressable, indicate potential compliance issues that could affect future operations.
Debt Management Concerns: 2. High Debt Levels: The company reported $1.28 billion in borrowings, raising concerns about its financial leverage and ability to manage debt amidst ongoing operational costs.
Revenue Recognition Risk: 3. Potential Revenue Spillover: There is a risk that some shipments expected in Q4 2024 may spill over into Q1 2025, which could negatively impact revenue recognition for the current fiscal year.
Revenue Guidance Uncertainty: 4. Wide Revenue Guidance Range: Alvotech maintained a revenue guidance of $400 million to $500 million for 2024, despite having already achieved $339 million in revenue by September, indicating uncertainty in future performance.
Cash Interest Payment Strain: 5. Increased Cash Interest Payments: The company forecasts cash interest payments between $45 million and $50 million for 2024, which could strain cash flow as it ramps up production and inventory for new launches.
ALVO FAQs
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ALVO Earning Call Sentiment
Alvotech (ALVO) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
ALVO.O
-0.55%Positive
The earnings call highlights strong financial performance, with significant revenue and margin growth, and optimistic guidance. Despite regulatory risks, the FDA observations are easily addressable. The company's strategic global expansion and upcoming product launches support positive sentiment. However, financial risks due to high borrowings and competitive pressures are noted. The market cap suggests a moderate reaction, leading to a positive stock price movement prediction (2% to 8%).
