ENZ Stock Down Following Q2 Earnings, Revenues Decline Y/Y

Shares of Enzo Biochem, Inc. ENZ have lost 0.7% since the company reported its earnings for the quarter ended Jan. 31, 2025. This compares to the S&P 500 Index’s 0.6% gain over the same time frame. Over the past month, the stock lost 1.2% compared with the S&P 500’s 5.8% decline.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Revenue and Earnings PerformanceEnzo Biochem reported second-quarter fiscal 2025 revenues of $7.3 million, marking a sequential increase of 18% from $6.2 million in the fiscal first quarter but a 14.3% decline from the prior-year quarter. The decline was attributed to the timing of large order fulfillment and a decline in all geographic areas of ENZ’s customer base due to declining market demand, primarily in its markets outside of the United States, related to general continued headwinds in the life sciences tools space.For the second quarter of fiscal 2025, revenues declined across all regions compared to the prior-year quarter. Sales in the United States totaled $4.8 million, down 6.5% from $5.2 million, while European revenues fell 25.1% to $1.7 million from $2.3 million. The Asia-Pacific region also experienced a decline of 28.1%, with revenues decreasing to $0.8 million from $1.1 million. The company attributed these declines to a slowdown in market demand, particularly in international markets, as well as the timing of large order fulfillment.Gross margin improved to 52% from 49% in the prior-year quarter and significantly higher than the 37% recorded in the fiscal first quarter. This improvement was driven by revenue changes, cost-efficiency actions, and a favorable product mix.The company posted an operating loss of $1.6 million, a significant improvement from the $2.2 million loss in the prior-year quarter. The Enzo Life Sciences Products segment (which excludes discontinued operations and Corporate overhead) generated an operating profit of $0.5 million, an improvement of $0.2 million year over year and a $2 million sequential gain. The company reduced operating costs, with an 18% decrease in the cost of revenues, a 10.1% drop in selling, general and administrative expenses and a 17.4% reduction in research and development expenses in second-quarter fiscal 2025.Net loss from continuing operations stood at $1.2 million compared with a $0.9 million loss in the same period last year. On a per-share basis, the GAAP net loss was $0.03, improving from a $0.06 loss per share in the prior-year quarter. On an adjusted basis, excluding discrete legal and separation expenses, the net loss per share was $0.02.Enzo Biochem, Inc. Price, Consensus and EPS Surprise Enzo Biochem, Inc. price-consensus-eps-surprise-chart | Enzo Biochem, Inc. QuoteOther Key Business MetricsEnzo Biochem ended the quarter with $40.3 million in cash and cash equivalents, down from $52.4 million at the end of July 2024. The company’s working capital was $35 million as of Jan. 31, 2025, compared with $45.2 million as of July 31, 2024.ENZ is actively managing its financial resources, with the board and management focusing on cash conservation. The company doubled its number of new product launches in the first half of the fiscal year compared with the prior full year, aiming to strengthen its core business.Factors Influencing ResultsRevenue declines stemmed from macroeconomic headwinds affecting demand, particularly in international markets. The timing of large order fulfillment also played a role. Meanwhile, foreign exchange fluctuations negatively impacted results, leading to a $0.2 million loss in the quarter against a $0.7 million gain a year ago.The company’s interest income fell 48.3% to $0.5 million in second-quarter fiscal 2025 from $0.9 million due to lower cash balances and reduced interest rates. ENZ also benefited from the full repayment of convertible debentures in May 2024, eliminating associated fair value adjustments.Management Commentary and Strategic FocusManagement emphasized that, despite a year-over-year revenue decline, sequential improvements in revenue, gross margin and operating profitability highlight ongoing progress. The company remains focused on strategic cost containment, product innovation and operational efficiencies.Enzo Biochem continues to explore strategic alternatives to enhance shareholder value, including potential acquisitions, joint ventures or asset sales.Other DevelopmentsEnzo Biochem is working to resolve its NYSE listing compliance issues. In January 2025, the NYSE notified the company that it was not in compliance with the exchange’s minimum market capitalization and stockholders’ equity requirements. Additionally, the stock’s average closing price over a 30-day period had fallen below $1.00, breaching the NYSE’s continued listing standards.In response, ENZ submitted a compliance plan on Feb. 21, 2025, outlining potential strategies to address these deficiencies. The company’s stock remains listed on the NYSE pending review and acceptance of this plan.Separately, Enzo Biochem finalized a $7.5 million class-action settlement related to a 2023 cyber incident. An initial $0.8 million payment was made after the quarter ended, with the final approval hearing scheduled for June 10, 2025.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Enzo Biochem, Inc. (ENZ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks