Organovo Holdings Inc (ONVO) Reports Third Quarter Earnings, Updates 2016 Guidance


An upbeat Organovo Holdings Inc (NYSEMKT:ONVO) CEO Keith Murphy today released the company’s fiscal third quarter results and also updated their 2016 guidance. Although none of the numbers were impressive, comments made by Murphy seem optimistic enough to likely keep the stock from falling too much further in the short term.

While the company reported just $300,000 in revenue for the quarter on a loss of around $0.11 per share, Murphy said the following:

“We have solid fundamentals and excellent long-term growth prospects supporting our core business. Our leadership in the 3D bioprinting space is grounded in serving attractive and growing markets with critical unmet needs, a competitive landscape in which our first mover advantage allows us to offer strongly differentiated cutting-edge services, and a growing, world-class IP portfolio. Our technology platform is flexible and is being leveraged to target multiple revenue streams in the preclinical safety, efficacy and disease modeling and therapeutic tissue markets.”

Organovo Holdings Inc (NYSEMKT:ONVO) also let the market know that their 2016 earnings and revenue guidance has been lowered from $1.2 million – $1.4 million to $0.7 million – $0.9 million. The reason for the reduction is that one of their larger orders they are expecting will be pushed back a few months until early 2017. At the same time the company did lower their expected net cash utilization guidance for the year from $32 – $36 million to $32 to $34 millionasthey experience economies of scale.

The stock decreased 4.78% or $0.1 during the last trading session, hitting $1.99. About 1.21M shares traded hands or 37.67% up from the average. ONVO has declined 44.12% since July 2, 2015 and is downtrending. It has underperformed the S&P500 by 35.25%.

The institutional sentiment decreased to 1.2 in Q2 2015. It’s down 0.95, from 2.15 in 2015Q2. The ratio dived, as 18 funds sold all their Organovo Holdings Inc shares they owned while 26 reduced their positions. 13 funds bought stakes while 40 increased their total positions. Institutions now own 16.21 million shares which is 30.82% less than the previous share count of 23.43 million in 2015Q2.

Penbrook Management Llc holds 0.49% of its total portfolio in Organovo Holdings Inc, equating to 173,675 shares. Messner & Smith Theme Value Investment Management Ltd Ca owns 36,990 shares representing 0.2% of their total US portfolio. Moreover, Lehman Financial Resources Inc. has 0.16% of their total portfolio invested in the company, equating to 119,100 shares. The Arizona-based Cue Financial Group Inc. has a total of 0.1% of their portfolio invested in the stock. Bolton Lp, a Connecticut-based fund reported 235,200 shares owned.

Since September 23, 2015, the stock had 0 insider purchases, and 1 insider sale for a total of $24,193 in net activity. Baltera Robert Jr. sold 6,000 shares worth $24,193.

Organovo Holdings, Inc. is a commercial-stage firm focused on developing and commercializing functional human tissues that can be employed in drug discovery and development, biological research, and as therapeutic implants for the treatment of damaged or degenerating tissues and organs. The company has a market cap of $167.11 million. The Firm focuses on the generation of three-dimensional human tissues, by utilizing its platform technology to create human tissue constructs in 3D that mimic native human tissue composition, architecture, and function. It currently has negative earnings. The Company’s platform, NovoGen Bioprinters, is focused on multiple 3D bioprinting technologies.